As long as its renovated PROPERLY and tenants are screened all should be good. 

Our thesis is that there is a critical shortage of inexpensive but quality housing in the US.

He hasn't been impressed with lead flow & quality.  

I have gotten 90% financing for more than 1 first timer because of their credit and the quality of the project.You need to be very liquid using credit unions for the purchases of shell houses cause the rehab will be on you. 

Here's some hopefully, helpful cut & paste info:------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

As long as you screen the tenants as best as you can to ensure they are the right fit for your property, you should have a great experience with them as well.

Just screen properly.

This is particularly useful if you find a lower-cost property that needs some updates to attract high-quality tenants.Reverse Exchanges and Parking Arrangements: If you spot a great investment opportunity before selling your current property, consider using a reverse exchange.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

For applicants on a work visa, traditional tenant screening methods can be a bit tricky if they haven’t established a U.S. credit history.