They are inexpensive, they usually come with mineral rights (big plus in Texas), they typically have short redemption periods, low rehab costs, and sell quickly at the right price; they also have large ROI. 

Hopefully as the rates and the housing market loosens so will some of these guidelines in the HML programs. from talking to hard money funds especially those who operate in more than 10 states, and 5 years of experience with underwriting teams, I'd actually disagree and say new construction is preferred to rehab due to experience level to enter the market. there's BP lenders that will do 15% LTC with 1-2 new build experience.

The market can be tricky with its block-by-block nature, but it's been a great fit for all-cash purchases like yours.I also have a team on the ground in Detroit that helps manage everything from finding deals to overseeing rehabs, which is crucial for out-of-state investors.

BTW I'm doing that on one of my properties right now that finished rehab mid Nov.

Hard Money typically funds 90% of the purchase price and 100% of the rehab on a draw schedule.

To address the slowdown, I’ve made some adjustments in hopes of increasing bookings:Reduced the Minimum StayWe lowered our minimum stay from two nights to one.

Should it be gutted and rehabbed or sold?   

It is critical to know the condition and rehab costs, but buying low and doing the deal in the purchase helps with overall costs as you enter the rehab phase. 

I can walk into a property and know within 10% my rehab costs. 

And, well managed institutional 1031 Exchange Qualified Intermediaries will have already evaluated the applicable risks, addressed the critical issues and implemented appropriate safeguards to protect your 1031 Exchange funds to ensure the successful completion of your 1031 Exchange transaction.