They become increasingly convinced that it will actually work!

These tenants had been in place for 3 years without a rent increase, and the unit was well under market.

Is it still limited to the max 10% per year increase? 

Finding the houses or how to allocate my cash isn't my question today.My question is, instead of just buying 3 of these 60k houses outright in cash and not being able to use leverage, I would obviously prefer to get loans and use leverage in order to increase my cash on cash return.  

Anyway, this amount would give me a negative cash flow as per below:Cash Flow: $366 (income) - $466 (expenses) = -$100At most, I can increase it a bit to breakeven.One solution I could think of would be to use AirBnB (short-stay) rental instead to increase my monthly income from the unit.Roughly, let's say occupancy rate is 50%, if I can rent it for $40 / day (which is quite possible from what I see in the AirBnB listings in that area), then that's about $7,320 a year.

I am not concerned about age of building...it's really all about location and the opportunity for value add and increase the net operating income.

you def have increased liability and have to rely on tenants to keep gates shut etc.

This will be a turn key that I will eventually update to increase rent  this will be purely an investment property

I can find ways of increasing income, but what I do not know is how much money I need to be making to get things started.

That's awesome as with past studies on the subject of success in a field, the first step is always the hardest and then from there with experience and knowledge everything gets subsequently easier.