Keep in mind that families on a budget will have their kids sharing a room, so a 3 BR house will be OK for families of 6 (2 adults and 4 kids); that extra room will only be attractive to larger families (unless an in-home office or TV room is needed by the family).So if you pursue that, be sure the local demographics support you getting higher income for your troubles before you do that extra improvement.

.• Crime and stable demographics.

I'm going to model out paint, carpet/flooring, and landscaping.  

It's the perfect place to reposition for the young professional renter demographic and get top rent.

Can anyone else verify the accuracy of the demographic info?

I did not keep track of how much money I put into doing the rehab of putting a new plumbing system or new electrical system nor the drywall which I completely replaced plus painting and a little landscaping.

Ok, skinny on the home:Vacant 1940s craftsman two story 2/2 in an UBER family-saturated (literally two blocks from on of the nicest middle schools in town) neighborhood that pulls ft per square footage numbers down from the heavens.In need of major renovation:  -Kitchen (all but possibly cabinets to be replaced)-Needs HVAC installed-Lower level bathroom needs to be completely redone-Majority of floors in remainder of house are good solid wood, just need refinishing-Need to add a closet to an upstairs room to make it a 3/2-Great deck outside has retreating and slitted boards from water standing on fallen leaves over the years-Old one car garage most likely needs tear down-Basic landscaping and fencingThis property is listed in the MLS and has 100 DOM, dropping from 190k to 172k.  

@Steve Vaughan Stick to your little WA rural investments... the grass is not greener going far afield and especially to the mid west .. were renter demographics are nothing like were your at..

My concerns are:The demographics only predict a 2% increase in population for the area.5 years left on the end of the lease. 

I am a scared but i want to take the first step.So current rent roll is  $820.00 $550.00 $625.00 $650.00 $2,645.00 Expenses  Taxes: $5,200.00 Insurance $945.00 Maintenance $2,000.00 Water/sewer $2,500.00 Gas HWH $750.00 trash $1,100.00 landscaping $0.00 Vacancy 5% $1,587.00 management $1,269.60 Replacement res $1,269.60 License $60.00 NOI  Net Operating income   15058 Debt Service        $7,393.62 Income/Debt Ratio  2.04