However: we do have really consistent, reliable appreciation, so that almost always offsets the reduced cash flow.

Your holding costs will consist of everything that you have to pay for during the time that you own the property, such as: Insurances, Utilities, Taxes, Interest expense on any loans, etcSee here:  Fix & Flip Project Costs: Purchase, Sale, & HoldingAnd here:  Rehabbers!

Higher default rates than anything else... the most common FHA 203k thread on here is threads exactly like this one, 2nd most common FHA 203k threads on here consist of "omg my GC bailed on me or went way over budget, now I can't finish out my 203k renovation!"

If you are consistent with your mail you will find a lot of success in this.

Any good companies that provide legit loan leads?

The rehab consisted of ripping out the old carpet and refurbishing the original hardwood floor, put in new window sills, removed old paneling in 2 rooms, sheet rocked, mud, and painted almost the entire interior of the house.

Worth area because consistent job growth coupled with a diversity of industries providing those jobs make it a strong rental market. 

I told them it's their responsibility to make sure all the issues are addressed with the electrician before he leaves to prevent consistent visits over the same problems and to follow up with him if he didn't make the visit.They proceeded to get mad at me and my electrician, saying that it's not professional for the repairmen to forget what he needs to fix, that I'm blaming them, etc.

When carrying out a direct mail campaign you need to remember to be patient and consistent.

Property is approximately 3 acres (2 lots combined) in a small decent neighborhood consisting of 130k-175k dollar homes.