Anywhere that has consistent or slightly growing population and a decent job supply may be a good fit.

@Blake McWilliams This is a most challenging problem with both residential and commercial investors.

Challenges?

.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

Both applicants lost their homes due to the hurricanes, which led to credit challenges.

Atlanta MSA is great and growing, but Multi-Family supply coming on line there both now and through next year is significant, wouldn't this be a better/cheaper deal 1 year from now?

Quote from @Michael Challenger: I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible.

Combine this with interest rates that are near the high for this century and cash flow is challenging.  

Despite surprises and challenges, I transformed it into a move-in-ready home and sold it for $145,000.

This 1925 bungalow was a true challenge, needing a complete rehab from top to bottom.