Why are Cash flow investors buying so low?

[Curtis Daniels]

Every time I listen to or screen a cash flow niche investor I meet from a REIA, they generally speak of buying properties at tremendously cheap prices like 11,000, or 17,000 where the counties are closer to the downtown areas (typically the projects). To me, a higher quality tenant is going to benefit you more living in a neighborhood where the property values are higher. Is this because these are the only properties that these cash buyers can afford? Do people who wholesale to these cheap buyers make much of a profit for themselves?