But they do have to be inhabitable. 

This investor has been in the business for 10+ years and operates in Raleigh, NC.Based on the turnover rate and the apparent gross profitability of this investor, i dont think by this time in history he is taking any chances and already has a way to target houses with no need of significant repairs, with no serious hidden physical or legal problems and most probably are no inhabitted by difficult people (if any).

I have a tenant who is suing myself and my property manager for claims of negligence and inhabitability.

That goes a long way to making sure property owners keep up properties and keep the neighborhoods and city a nice place to live for all and safe for residents.As I told some members on City Council I have never met a landlord that wants to poison children, but that it isn't fair to go into an existing property where an investor was operating under a certain understanding on expenses and income for the property and suddenly tell them the property is not inhabitable and force them to immediately come up with piles of cash on the spot to get the property in rent-ready condition again.

There was a ton of stress involved and we would've been better off to pay more for a place that was in habitable shape.

I'm not a lawyer though and this is only what I've interpreted, so may not be 100% correct.Incidentally, my 2nd occupied property is currently inhabited by squatters and I'm working through options to either sign a lease with them or get them out. 

The little details that are awesome in a personal residence tend to become annoying fixes while tenants are inhabiting them.I would find out exactly how much the following expense are going to cost you each month.

My goal is to spend all my hard earned money on a run-down inhabitable structure on a tiny piece of land with hopes of breaking even on rents and the ability of living free...which you guys often refer to as REI :)I hope to meet wonderful inspiring people and learn a thing or two along the way!

Property has to be in habitable rentable condition. 20% down if can cash flow with PITI. 

I had to use all cash due to the appraisal  - it showed there is significant damage to the home (non-inhabitable)  so I couldn't get a loan on it.