The lawsuit can cause all lenders to balk, not just fha. The prices have that built into them a little because it doesn’t allow those that live there to buy them even if they are cheaper than rent. I have a relative that couldn’t get financing with 40% down on a rental due to a condo lawsuit, that case it was about 100k for a 1200-1300 rental, so it would cash flow right away, they couldn’t get all the cash together in time and an investment group bought em up (there were a few in the complex at that price), certain investment groups love these litigation units, especially if the litigation isn’t that big of a deal. Rent neutral is a good sign, that is a good area to have a rental because of the many yuppie type jobs and demographics. I’m kinda suprised at the reaction of the piggies, the fundamental values and price assumptions made a year or two ago get reached and then some and people say they are overpriced, that 1999 nominal prices are now fair. So if they hit, let’s say 125k or 100k, I’ll be willing to bet a beer that someone posts that they should be 75k and don’t be a knife catcher. It’s a starter place that can be bought on a starter salary, I don’t like 1br rentals either, but it’s in an area that has a demographic that kinda likes them. After college I had a few buddies get jobs in utc and they were sick of having roommates, so they each rented a 1br in utc, right by work and knocked out a few years of working 70 hour weeks while establishing themselves in their career, close meant more than space to them at the time, after a few years, they moved. The lucky ones bought and when it was time to get a wife and a house in the burbs they sold and parlayed it into a sizable downpayment, the really lucky one kept his as a rental (which he now owes zero on, lucky bastard, I can say that because he’s my dumbest friend and also the richest, lucky bastard, damn). 20 years ago I thought they were nuts, now I’m green with envy sometimes.