That said, if all you follow is the numbers you will end up with junk properties in undesirable areas.

The sellers fear is if the home were to have severe damage and the insurance would cover the damage and replace roof and kitchen then they would be locked into a undesirable contract and now the home is worth more.

Either you aren't doing many deals or you are acquiring property in a very undesirable area (country, desert, swamp land). 

Not that I agree with such laws, they're often meant to keep out "undesirables" who are unable to rent a whole house, like minorities and young people. 

I think every LL needs a legal means to get rid of "undesired" tenants without the effort/bad feelings of terminating a lease or worse an eviction.We use month to month lease and have never terminated a month to month lease for any reason other than missed payment. 

**mini footnote:  A wholesaller is similar to a Real Estate agent, but without the fees & deals worked are always off market, exclusive deals.It was extremely competitive and very exciting and I learned a whole lot.One of the challenges with the market in Madison County is that there are many many deep pockets not only in the area but also those that have trickled down from Middle Tennessee not to mention investors from throughout the worldthat are looking invest in real estate just like you.A lot of my Nashville Buyers have been asking about purchasing deals in Madison county for years.Real estate agents that I have worked with in the area say that there is zero inventory and if something comes available, the buyer has to be 100% ready otherwise someone else will get the deal.That being said, I personally think that there is a lot of potential in untapped areas of Madison County.One of the biggest differences between Nashvilles market in Huntsville‘s is that there hasn’t been anyone that has been brave enough to build/Rehab/re-vamp areas that are undesirable i.e. north side.

There will also be irresponsible and undesirable people in every class of neighborhood, so be aware.

@Scott NidellHey ScottAbsolutely your words are gold.No point buying in undesirable locations and end up with trashings.When I started buying in Atlanta in 2011, (South Atlanta), believe me I had at least 4 trashings.

I have done that already, and in short I came to following high level findings.Positive impact on appreciation: -area was historically undesirable due to association with “East Austin” demographic stereotype, but that his changed rapidly in last 10 years due to proximity to downtown, universities, corporations moving in, redevelopment of parks/recreations etc.

Long term there is no other solution than just paying the taxes, if you have to take out a loan to do so that may be an undesirable but necessary option.