When it comes to the rehab, I would put some "lipstick on this pig" and make sure it passes a section 8 inspection.

You can find older neighborhoods that might need some lipstick, but nothing too out there.

If the comp in the area are modern post 2010 houses and you have a 1955 floor plan, don't fall for the trap like I did and put a lipstick fix on a old house (I upgraded everything, plumbing, electrical and HVAC, new roof and a complete make over).

For example, just closed this week on a 2/1 for 115,000 and with some minor repairs and some lipstick it will be up to par with the neighborhood and will cash flow.  

Dawn, reference  "lipstick on a pig" to describe the property.

If you put a decent rehab on a property your going to get good cash flow but some of these investors are putting lipstick on a pig and throwing the market off.

Some have a reputation of putting lipstick on the pig, then selling it as a premium product.

If I find something that will be simple "lipstick", I will be in and out quickly, and I don't personally have to do much in the way of labor other than choosing colors, ordering supplies, writing checks, and then marketing - then I'm okay with $10K - my earnings per hour invested are great. 

In some parts close to downtown Atlanta there can be a dumpy old house that had lip stick put on it and tax can go 3k to 4k a year etc.Property tax is just one component to look at. 

And if you are being a rental ready to rent or just needing lipstick, we can also do a purchase loan up to 80% LTV starting @ 6.25% for 30, or the 5/1 ARM above.