If I spend 500,000 6-600,000 here in La county for example, I will get a undesirable neighborhood, crime, low income, gangs, uneducated neighborhood and a house that most likely was built in the 1930's and outdated.

All of these allows you to get back your initial cost (or more if you prefer to structure it that way).Regarding delayed financing, I've found it to be still undesirable unconventional, but it works for a lot of works. 

I think once you add those expenses your Cap rate will decrease to an undesirable level.

I prefer month to month, it makes it easier for me to get rid of undesirable renters faster, and I don't mind people leaving with 30 day notice if they don't want to be there as they may become a disgruntled indentured tenant.However yearly leases may make more sense in seasonal markets, areas of low demand, and when your rent is at or above market.

I.e. the area will become undesirable, rents will go down, etc.

We have peripheral towns like Joliet, Rockford, Elgin, etc that are larger than a lot of the other Midwest towns people think are hot spots. 

He has put a NOD on all three because lendee was late in April, making their properties even more undesirable to potential buyers, hindering their sales and is now considering on lending more for the condo's rehab to get it on the market.  

People just starting out (who need the bank more than they need you) and people with high net worths and many financing options (the bank needs them more than they need the bank) are not in comparable positions.My goal is to be a force in the REI world in my area and I believe people outside of your peripheral vision are paying attention even when you think they aren't.

I had a similar situation (undesirable tenants) that surfaced when doing the inspection of a duplex I'm purchasing.

Because if you pick the wrong one (it's not always an LLC), there can be undesirable tax benefits.