It's really not.....your market is being driven up by hedge funds backed by venture capital groups and when the plug gets pulled on that, which it will because to me their model is seriously flawed, values will plunge and you don't want to be sitting on mortgaged properties.

I'm sure they know there is no lie that wouldn't be uncovered, that has not been an issue.

I intend to buy between one and four properties that may or may not be in the current state I reside in; this is all contingent on the opportunities that present themselves or as I uncover them myself.

That said, its major flaw is a steep driveway coming off a main street road without on street parking.

One flaw is that you're working the math backwards.Let's say you've got a $1K project:-You can do it yourself and "save" the $1000 and it takes you 50 hours...you're earning $40/hour.

Is this flawed thinking?

The other matter is taxes, accepting a DIL is the same thing as being full paid for the obligation as owing which means your discount becomes paid and is taxable income.So, your plan of foreclosing and renting the property is rather flawed and predatory.

Anyone have any opinions on this strategy and if it is flawed?

I grew up in the city where they are located so I know they are in stable neighborhoods (not declining but not improving either).Prop #1: 10 units in 2 adjacent buildings.Price: $280000Down Payment $70,000 and Mortgage of $210,000Annual Rental Income: $47,500Annual Expenses (incl taxes, ins, mgmt fees): $25,400Net Operating Income: $22,100Annual Debt Service: $16,284Positive Cash Flow: $5,816 (22,100 - 16,284)CAP rate: 2.1% ($5,816 / $280,000)Prop #2: 10 units in 1 buildingPrice: $229,000Down Payment of $57,250 and Mortgage of $171,750Annual Rental Income: $56,100Annual Expenses (incl taxes, ins, mgmt fees): $29,903Net Operating Income: $26,257Annual Debt Service: $13,320Positive Cash Flow: $12,937 (26,257 - 13,320)CAP Rate: 5.6% ($12,937 / $229,000)I'll obviously do a thorough inspection done of each building to uncover any capital construction needs or deferred maintenance problems.Any thoughts?

So I build historic exteriors with all the details but interiors with the things modern builders want.I have flipped a lot of homes as well and when you buy a property to flip you never know what you are going to uncover or run into as far as issues.