I had my ARV estimated between $140-150k; this is in a neighborhood I am very familiar with, and I had a good list of comps putting it in that ballpark, so I wasn't worried about the appraisal at all.The appraiser came through and took less than 10 minutes at the property, barely looking at anything and just snapping the photos he needed.

We would have to sink ALL our cash, probably sell the Indianapolis property (which we were considering doing even before this opportunity), and would earn barely above a break even point on the rent.

A and B are confusing.

That’s just barely over the 1% rule .

I’ve been pouring my extra money into my current mortgage and now that I’m ready to buy #2 I have barely any cash to put down.

No stairs, pink & yellow tile, shag carpet, floral wall paper padded toilet seats. 

But even if we sell, there are repairs needed to be done and because we wanted to offer asap for the new home, we may only have the option of cash buyers like Redfin.com who valued our home low that after their 7% fee and repairs, we're left with barely even anything for our DP/CC/moving costs.

First see if it will pencil if you just do the basics and just turn the upper floors into apartments and if it will cash flow (bare minimum to get them livable without added amenities. 

But one of the PM that we spoke about told us that from his experience relatively cheap houses ( he was saying that single family house  whose rent is lower than 1000 dollars is in the category cheap) attract people with low salary, and that basically then are barely surviving, which means that if they have any serious problem in their life, child sickness, car being broken down, tooth problems, they will not be able to pay, which will lead to either slowing down of everything, or them not paying at all, or not even wanting to move out, an then he layer and just losing the money.  

If they barely meet income requirements now what happens when they have to pay for daycare and diapers?