If you just think of assigning a contract and make most money off it you you will end up with bad deals, the ones that everyone frowns upon , with unjustified ARVs, high rehab costs, in cold markets that are too risky or a losing bet for a buyer.

As far as choosing a neighborhood - your best bet is to find a good investor-friendly realtor who can help you.

I don't think it's a great strategy if you are just getting started.If you have the financial stability and experience to take on negative cash flow betting on the high appreciation then I think there isn't a problem with this strategy at all. 

. :-)I'm willing to bet that the real GCs in Texas are every bit as good as in Cali.

@Brian BurkeI bet none of the investors asked the question of “what does the capital stack look like on this deal”Probably was variable rate debt as well…

I bet most realtors would tell you that it adds value too...whether for a sale or rental perspective....And have you heard the new dishwashers?

Since the population in these states is relatively small, many lenders avoid them.Face-to-face at local real estate clubs, found through Meetup, are your best bet.

Go to the source and I bet you get the answer quickly. 

For example, a 10% return (or reward) can be worth the risk if you are investing in a Class A single-family rental in a great market with an A+ tenant, but not worth the risk at all if betting on a 16-seed to make it to the Final Four in March Madness.Investors in mortgage bonds utilize the risk-and-reward framework when allocating how to invest capital.

The Midwest and Southeast would be your best bet but under $100,000 is pretty challenging to find these days unless you go to really bad parts of town, which I would recommend avoiding unless you're a specialist.