The biggest limiting factor is going to be your credit, income, and assets - they always take those seriously. 2) I don't think this is any more dangerous than buying a 'pig' and putting some lipstick on it in a non-college town.

Its unfortunate that the supposed "tax benefits" of crummy rentals are often used by unscrupulous sellers as lipstick to convince buyers to buy these properties.

You'd have to be very confident that your buyers are willing to pay that much though or you might get stuck putting the lipstick on yourself.

It is a lipstick flip, but you are more than welcome to stop by.

Recommendation was to put lipstick on and it's ready to rent.

Like you told us we want want something that we would have to guy out as our first property but something that needs some lip stick. 

Mixing up strategies or approaches is sometimes required, you don't want to head off making an offer saying I'm going to lease-option the place after adding lipstick as you need to be flexible to take advantage of other opportunities.

You'll need a mortgage broker to carry back loans yourself..... you get an interest rate on your money, interest over ride on the loan, down payment and you get paid off at closing.....it's an option.You could go to a hml type, be prepaired to be fleeced in that price range, it's lost profits, but if it makes a deal work, you make more than the alternative, go see them....soe areas they aren't so bad.If you don't have experience, you might find some decent deals that need lipstick and the grass mowed and slowly get into more difficult projects.

There's going to be a lot of competition, and not nearly as much profit (usually) on a house that needs 'lipstick' improvements.

I know that when I start trying to make a deal work, more often than not, I am just putting lipstick on a pig.