My goals are to be able to own a few properties and generate a stable income so i have more time for my family.

Most likely, the seller is friends with or otherwise working with the pest control company -- and is trying to use the buyer to generate some business.

If this is a rental, you'll generate the highest returns by keeping your cost basis as low as possible.

I'm with Brandon -- if you're generating cash flow, I'd hold it -- otherwise, I'd move on.

I'm sure other areas are the same, though the prices are out of a smaller investors range, if investors partner up, and get into commercial type properties (office, multi family) in the long run they may find they have better quality tenants, and generate higher returns and appreciation for the future.

With the low downpayment for first time home buyers I would have been able to buy a decent duplex, live in it for a few years and then rent it out and generate some cash flow.

If the loan-to-value is low (at or less than 50%) and the property is 'productive' (generating income if a rental, etc.) you may get interest in the BP marketplace....

The income generated from the three units will allow me to cover all expenses and the PITI payment (should be between 1200 to 1800 depending on the sales price).

Though if you have any lead generating strategies let me know!

I would suggest focusing on off-market properties...find a good short sale agent to work with and start generating your own leads.