I have gotten 90% financing for more than 1 first timer because of their credit and the quality of the project.You need to be very liquid using credit unions for the purchases of shell houses cause the rehab will be on you. 

**Property Inspection**: After submitting the RTA, HUD will schedule an inspection to ensure your property meets HUD’s Housing Quality Standards.

Here's some hopefully, helpful cut & paste info:------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

I explain they will have difficulty renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe.

Disclaimer: I'm probably biased because I've lived in Indianapolis for the last 5 years :)If you're set on BRRRR, I'd recommend higher-quality neighborhoods in suburbs of Indy like Zionsville, Carmel, Fishers, Noblesville -- they tend to attract higher-quality residents have less crime, and have less surprises than some of the 60-100 yr old homes inside the I-465 loop. 

On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.In my experience, the additional work and eventual losses erase any benefits of Section 8.

Are their listings detailed with good-quality photos?

@Marc Shin we use both granite/quartz and laminate in rentals depending on the size and rental quality.

My niece moved from Redwood City to Seattle and was always complaining about the smoke and air quality, even though I don't think it was that bad  Ya I grew up in Silicon Valley and Redwood city is half way from San Jose to SF.

You're flipping the property to rental quality, creating a SOW, hiring contractors, or swinging hammers DIY to get it done.