You mention market appreciation is good for a $100k home - throw away the last four years and what was the appreciation from 2012-2019 - that is what you should be looking at.I saw this with people in shenandoah va raving about how appreciation is awsome etc (during covid) - of course it was everywhere was appreciating, but now that we are back to a more normal economy -- I would not look at the past few years appreciation and look back to prior to see if it truly is an appreciating area.

.- Take all the cheap prints off the walls. 

Cheap is expensive in the trades.  

How do you manage cost, unexpected surprises and keep the project on time. 10% to manage a rehab is actually pretty cheap, I suspect you have never done that yourself, otherwise you'd know how much work that is.

Examples of pitfalls include purchasing in an undesirable area, not understanding the market values (vs. list prices), not knowing the rental values (current and market), inheriting bad tenants, buying a lemon, going rogue on renting and management with no contacts / systems / no legal understanding of PA and Municipal landlord-tenant laws, not having trusted resources and contractors in place, using out of state lenders or shaky financing, throwing lipstick on a pig when renovating a house and wondering why it's ARV isn't increasing, tenants are renting, etc.

Refinancing out of the FHA loan and then taking out a new FHA loan when you are done won't be cheap and you may be refinancing into a higher interest rate.

If they’re doing it for dirt cheap and gave great service, I’m a lot more likely to give them a “bonus” than if they charged me full rate and took a long time to get to the worksite.I don’t think there’s a hard and fast rule on anything, but if you want them to treat you well, you need to treat them well (pay when asked, provide meals for him/her and their crew, be flexible when you can, pay extra, etc.).   

They put their old hand me down furniture and cheap plastic Dollar Tree kitchen utensils in there, pass off the management to Vacasa or Evolve, and expected to make a killing.

Note good does not necessarily mean cheap   Look at helix hospitality.Amazon sells mattress and box spring wraps that prevent bed bugs getting into the mattress/box spring.  

(Click to enlarge.)So, if you purchased a property whose characteristics match the housing requirements of the Transient segment, you would likely lose a lot of money—no matter how cheap the property.