I didn't talk to an agent or anything yet, but thanks to zwillow I saw that it was purchased in 2013 for $152,000 and comps are $280,000+ range.

(I've got my own opinions, but I'll hold those until later in the post)FYI, depending on area, most of these retail in the $80-90k range. 

Also, if you just take a cursory look at the listed properties there, the price/sq ft ranges from the low sixties to just over $100 for the majority of properties. 

Welcome to BP @Louis Leone Everyone has a different expectation for cap rate, where would you say your range is?

The units sold by the new developer were also in this lower price range.

There are safeguards so people don't cherry pick their own mortgage and figure out a way to knock off some principle and manufacture their own discount.

Agents earn more when you buy a more expensive property.If you are going to use a property manager it wouldn't hurt to meet with them to get some ideas on good area's to look at and your best price range.  

I am looking at properties that would rent in the $1500 - $1700 range, which means they are listed around $139K to $150K.  

Provided the Borrower is within the acceptable range of Debt to Income, they can qualify for a loan.  

Rents in the area are in the 12-1300 range and appreciation would definitely occur.