Although this seller reports all of the tenants pay their rents on time ( and I do believe him) we screen our tenants differently and I tend to be more select so I'm not sure I'd like him to be the one screening and replacing tenants.  

I came back to the west coast and tried as hard as I could to get a pool together to buy them.. but capital as you know then was tough to raise.. well the big builders bought them and they are doing fantastic will lots that cost them 90% less than replacement costs..

If this a buy/hold, you may wish to consider eliminating the inevitable issues that arise with cast iron lines and replace immediately after foundation repairs.

You state that you are having problem low-income renters so let's use the safe 50% rule, expenses are going to be higher, higher turn over, more repairs, more carpet replacements, more legal fees for 5-day notices, higher headache.  

You didn't think about management, takes, capital expenditures like a new roof, tree roots cracking the foundation, replacing HVAC, vacancy, or evictions.

We replace the lists with fresh data every 6 months and keep on rolling...But there are special groups like expired listings or tax liens or divorce that we might just hit once or twice near the event and not necessarily continue mailing to them.Also, think about how DIRECT MAIL fits into your larger marketing strategy - we also like OUTDOOR (billboards, bandits, etc.) and ONLINE (AdWords).  

@Leo B.Keep in mind that ALL of the proceeds you intend to use for the replacement property have to be held in trust by the exchange intermediary. 

Is it the purchase of the first replacement property?

Things get damaged, so there is the dealing with repairs/replacement of items.

I would like to build up to at least 25 units so i can replace my regular Joe job income of about $90k per year.