If you have a well-maintained unit in a decent area, your tenants will want to stay, even if the increase is substantial and it is within market rent.BTW, prior to purchasing, ask the owner for copies of the most recent utility bills, tenant estoppel certificates (signed paper from tenant stating financial terms of the lease) and CLUE report ( A report that lists if any insurance claims have been filed against the property in the last 7 years) to ensure property is insurable.

@Cary Ferguson Jr guess it depends on how low rents dropped during that recession, but based on what rents dropped to last time during the recession in this same area..I think I'd be fine. that's what I find so odd?? 

I have jumped into real-estate investing in the last year.  

Unfortunately the purchases of the last ones have not been long enough for them to appreciate to use them as sources of another down payment.

When you're scheduling week long projects, you don't want people flaking and backing out of the contract last minute. 

I've worked in advertising sales for the last 8 years and have been a home owner for 7.

I can explain the mechanics.Regarding that price point, it would make sense to go with a 2nd lien vs a 1st as the firsts we bought last year for similar investors turn out to be such low valued houses that unless you rehab them, you will not make little to no money.

Last recommendation would be to read the BiggerPockets blog in the Finance / Tax section.  

I've been surfing the forums and listen to the podcast and webinars here on BP for the last 6 months and have learned a TON... wish I would have found this place before we spent $20k on a guru, but you live and you learn I guess!

I have the concepts and did try once but had to back out without selling it at the very last minute.There is a fantastic book from BP that will help you as well with some concepts and learning ways to invest with little money: http://get.biggerpockets.com/nomoneydown/