It'll be a bit riskier than buying something already renovated, but if you have the right team and numbers in place you could pick up some more equity on day 1, have less money out of pocket, and have something that produces some cash flow. 

My buddy actually lives in Henderson, so perhaps picking a place close to that would be the move and get it at a 6.5-7 cap.

However I have done them in multiple States including Pennsylvania and South Carolina, and what I can say is that it is a tool in your tool belt. when you come across a deal that makes sense to make this type of offer you can do it. the laws in your state make it difficult for you to do these types of deals I suggest either don't do them or pick a virtual market in which you can do these types of deals.

Correspondingly, only the owner takes a hit if they bought the wrong property, overpaid, picked the wrong PMC, etc.Over the years, we've had numerous owners try to get us to share more of their risk - for free.

So you can of course cherry pick those and stay low risk, but then you're much less likely to hit your $120K/year since you can only do as many of those deals as come up and you successfully beat the competition out on.

I'd love to pick your brains about investing in the Columbus, Georgia area.

@Roman A Sandlermore important than picking a market is having a plan for building a network.just to be blunt, i think a lot of investors pick a random market using a formula like you did, rather than picking a market where they might have some kind of advantage. 

Once you start answering those for yourself you'll be able to find a few strategies that could work, then you can start researching them, and then you just pick one and start trying to do it.

I give a $20 gift card to the local grocery store day of move-in so tenants can stock up on a few staples or pick up something ready-to-eat from the deli.I have given wine, but you need to be careful & not assume everybody would welcome such a gift.

If you are convinced this is the guru you want to follow, pick up a cheap resale on amazon or ebay...read and study it cover to cover.