Existing tenants = discount.  

They don't cost a lot of money and they add tremendous value!

In this case there is tremendous "damage" to walls beyond wear and tear.

Another way is the BRRRR method—buy a rundown multifamily unit at a discount, fix it up, rent it out, and refinance to buy more.

Option 1:30 Year FixedLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.225Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $2,018.76Broker Fee % 1.25Cash From Borrower $78,081.01Option 2:5/6 ARMLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.025Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $1,990.40Broker Fee % 1.25Cash From Borrower $78,052.65

However between discount at purchase, value add, and appreciation is up ~$700k in 2.5 years.  

The ones who specialize in property management know and understand how the landlord business should be operated and how to draft a lease that helps you tremendously as a landlord.

but there is such tremendous demand by investors that if they see something that's been cleaned up, they will all pounce.hope this helps

However, I could see that changing in the next 18-36 months, and as someone else mentioned, maybe you are able to get some sort of a discount today and in 3-4 years you look like a genius. 

And banks won't provide mortgages for them either.And they have a tremendous drug problem and landlords bore the brunt of it.