How do you typically evaluate or assess the level of risk when dealing with more complex scenarios, like foreclosures or borrowers with bad credit?

Hello Matt, are you only doing prefab wall panels, where they are assembled before delivery, or are you going to the next level with a full Prefab modular construction, where the units are completed at a factory and relatively minimal work is completed on site.One issue I have heard on the modular construction is the manufactures are sold out for this year.You might want to check out www.VuhausLLC.com/models they are doing high end modular construction.

My CPA says STR "A" can only deduct expenses for STR property "A", and only up to income level.

If in the year 2000 you invested $200k in Cleveland and $200k in San Diego both with same level of leverage.  

Some of the zips with better cash on cash returns are going to also be the ones with lower level neighborhoods.

I don’t see anything wrong with paying points if you like the rate, getting it to a level you like is just personal preference.You’re either going to pay it on the front, or the backend. 

There are many factors to consider when investing in any market, but the main things I work with my clients on are price point, level of rehab, exit strategy, and risk tolerance. 

I consider that the upper bound of reasonableness.

For the level of risk involved investors want 20% annual return.  

If you can get fixer-upper in an otherwise safe (looking) Class A/B neighborhood, you could put in some sweat equity then rent that out.