I think every investor has a different expectation of COC return.

Do you think the higher return outweighs the risks (such as crime, vacancies, and maintenance expenses) when compared to a property in say downtown or midtown Sacramento which seems to me a pure appreciation play right now?

We are not upset with my stepdad, plus he's now in his mid 80's - we thought it would be wrong to attempt to force him to move this late in his life.  

While your renters pay down your mortgage you can take advance of tax benefits, appreciation and cash on cash returns.. building your net-worth.

The numbers look good:Location: Broadway HouseNumber of Units: 1Rent: $1,350.00 Square Feet: 1,666 Upfront Costs:Cost per Unit $95,000.00 Price: $80,000.00 Cost per Square Foot: $57.02 Cap Improvements & Repairs: $15,000.00Cash on Cash Return:19.84%Total: $95,000.00 Debt Coverage: [minimum 1.6] 1.78 20%Down: $19,000.00Capitalization Rate (ROI)9.05%Current Assessed Value: $29,666.00 Loan Amount: $76,000.00 Net Cash Flow per month: $314.08 Interest: 4.88%Net Cash Flow per month per unit: $314.08 Term (yrs): 30Total Rent/Month: $1,350 GROSS SCHEDULED RENTAL INCOME: $16,200.00 Less: Total Annual Debt Service: $(4,826.40)Less: Operating Expenses: $(6,470.63)Less: Vacancy and Credit Losses (7%): $(1,134.00)NET CASH FLOW: 3,769 NET OPERATING INCOME - (NOI): 8,595 INTEREST: 3,680 DEPRECIATION: 3,455 NET INCOME: 1,461 Property Insurance: $1,000.00 Property Management (10%): $1,620.00 Placement Fee(30%): $405.00 Real Estate Taxes (5.06179%) $1,501.63 Repairs and Maintenance (12%) $1,944.00 Services: Snow Removal: 720 Utilities: Electricity: N/A Gas and Oil: N/A Sewer and Water: $30.00/mo Other

. - I also like to invest in my local market, even when I know returns are potentially better elsewhere. 

If I had a CPA prepare my tax return and it is audited, I would expect the CPA to defend his work on my behalf without charge.  

After several emails with the sellers realtor regarding a commercial multi-family, they stated the following:"There is much information (detailed maintenance, tax returns, costs, etc.) that they will be glad to make available during a due diligence period with a contract and a paid deposit."

Depending where exactly the house is the reality is most Graduate Students/Young Pro's are looking even earlier than late July or early August.

The cash on cash return is around 11%, The property has been fully rehabbed and I've had tenants in place since April, under professional property management.I'm looking to continue growing my portfolio, but I need to pull as much capital out of this property as I can.