Gaining equity through value-added rehabs

[Eric P.]

Anyone know a metro area where gaining equity through value-added rehabs still works? Thus someone can implement the fix & rent (BRRRR) strategy to build substantial equity with each purchase?

Any portion of the metro area is fine (downtown or suburbs).

Preferably within these constraints:

- Under $150k to purchase & rehab (I can pay in cash)

- purchase + rehab costs 70% of ARV

- rents 1% or more of ARV

- reasonably easy to find a place (ie, not SO COMPETITIVE that these places are impossible to find)

MOST IMPORTANTLY: Targeting class B, B-, or C+ locations (or better). NOT targeting the ghetto!

Let's clarify this a bit to say: ONLY neighborhoods with MORE BANKS THAN CHECK CASHING STORES!

I've talked to people in many different metro areas, and it seems like housing prices have gone up so much over the last few yrs that gaining equity through value-added rehabs is only working in rough neighborhoods these days (ie, areas with more check cashing stores than banks).

Would love to find somewhere that this still works in a class B, B-, or C+ location (using the definition of more banks than check cashing stores).