I've seen a few different opinions on the topic and thought I would add my own.  Hopefully even get some advice and opinions on my thought and see how it goes.

So many people think they're a horrible idea just due to the money you need to sink in IF you want to keep them as long term rentals but I've always viewed them as short term term rentals/ long term teardowns.  I'm not sure the fees etc around the country but down here they charge impact fees based on what you're building, for new construction as well as all the standard fees/costs (water, sewer, electric, etc).  I've always kind of viewed getting a property like these as a tear down rental, set a budget to make them "livable", there are always decent people/tenants that just need a cheap roof basically so you can get some cash flow and rent towards the property.  After a year or two, basically tear down and build new.  As a rental you won't make a fortune but will break even or make a little, when ready to build you save at least $10k depending on the area for impacts and utilities.

Am I missing something big in my view long term?  Short term I've worked with a few investors and done a few myself that seem to work well this way