When Rent per sqft is $2+, average house cost $600k and physical vacancy is sub 3% (city-wide!)

I think unless this thing is forecasting an amazing CAP rate after factoring in higher than normal vacancy costs, estimated maintenance costs, and possible estimated litigation fees for evictions I would stay away for a first time investment, there are plenty of deals out here to not get caught up in a nightmare. 

Fine, throw in 10% for vacancy and 20% for taxes/insurance/water and I'm STILL cash flowing over 10% on my $40,000 investment.I understand that the key to this is actually getting tenants at $550/month, but if the market seems to support that, can a pig not be a pig?

Vacancy ~ 8% is about one month out of 12.  

Vacancies, late rent, repairs, tenants destroying property, maintenance expenses, &evictionsI will make you an offer to buy your home AS-IS.

Turn over costs and vacancy can quickly eat up that huge increase 

Buyers will start requiring vacancy or price reductions to account for the rent shortfalls buyer will face when attempting to carry the property. 

Vacancy is either 100% or 0%.  

You have to factor in a 20% vacancy rate, rehab costs, carry costs, taxes etc.

. $450/month in cashflow, not including capex, vacancy, etc etc.