that needed new everything on the inside (paint, bathrooms, kitchens, doors, most flooring) and had foundation issues.

I don't think that you should change that philosophy that "appreciation is the icing" because if you're counting on it then that can be an issue if things turn.  

I speak to other investors in my state (NJ) and they all agree that its a state wide issue.

They spend everything they've got to make their first purchase so they have nothing saved up for the unforeseen issues that always pop up and they're still practicing the same bad financial habits they always have.It's beset to have a strong foundation with good credit, an emergency fund, etc.

Appliances are relatively cheap on Offerup or Craigslist so it shouldn't be much an issue. 

we did not pay anything.. keep in mind West coast and East coast title companies are so completely different.. we have a customer service department that is all digitized.. info is at their computer monitor and in their data base.. 

Every startegy has it's risks - a friend of mine issued a note to a flipper and almost lost 150k out of his IRA.

So many times my Property Managers told me stories of tenants behind on rent due to job loss, drug issue, family death, you name it. 

In my experience, the most common issue is noise between levels.

@Allan CalderonGet with the county Flood Plain Administrator and permits department.