I have been investing in Toledo, OH since 2009 and owned 2-12 unit buildings and find they are way too hyped (read lots of guys from BP want to pay too much for them) and the reality is residents in Toledo are ultimately seeking a house with a yard and a garage so as soon as a resident improves their financial situation they move into a house.

I’d be sure to look at the cost per sq/ft analysis of what the difference is between new construction and what you will pay for an as built.

Anyone remember the podcast from a couple of years ago where the guest talked about how he goes about raising rents when he inherits tenants who are paying well below market valueHe talked about making up a folder of his expenses as well rental comps and meeting with the tenants and having a two-way conversation about where to set the rent. 

Would I be able to knock down and build a new home and once I sale, I use proceeds to pay off the first bank? 

When it gets fun is when they don’t pay you back - then the lawsuits start flying

Paying 2.4% for total closing costs (which include title search, title insurance, all attorney doc prep and recording fees) seems very reasonable given the relatively low $ purchase price.

Interesting book recommendation: Whack-A-Mole: The Price We Pay for Expecting Perfection by David Marx.

Learn smart funding plans like lease options, seller-backed loans, subject-to deals, and wraparound mortgages.Build your credit and financial profile by paying down debts, maintaining a good payment history, and demonstrating your investment knowledge.

True value is as much as someone is willing to pay, correct?

You also have to factor In your closing costs each time you refinance, and if the goal is to pay down your loan aggressively, you will be hitting reset each time you refinance.