In fact around here the number of older people looking for $450-$600/month rents are trending exponential.I have observed so many older people living in unhealthy disgusting accommodations because they can't or will not afford better.

Occupancy limits must still be observed, however.

I would say basement condition should have been observable as well. 

The  kind of gains we have observed the last few years are way above the long-term 2%/yr national average -- an average that pretty much just keeps up with inflation.  

Just my observation and preference.    

I found out that one of the tenants (family with one kid and another on the way) earns more than I do at my job (they probably make between around $45k between the two of them), and in the other unit, it's a couple with 3 kids and a dog, where the mom works full time (in a department store) and the dad goes to community college and gets stoned at home during the day (but I have no evidence of that other than personal observation when I repair stuff over there).The point is, as each week passes and I lose money paying for the loan on this property, I feel PWND.  

Just a few observations from someone who did this repeatedly over a 24 year active duty career:First, owner-occupied financing helps a lot, but as others have said above, the numbers still need to work.

Your observations are well taken.

Your typical big dog is going to bark less and pee on the furniture less but that's more personal observation than fact. 

Your powers of observation are legitimate enough, in my opinion.If your friend saw mail in a way that wasn't illegal, he could be a witness.