We're doing a ground-up construction project in a booming spot on the Pacific Coast of Mexico.

People were chasing industrial workers on the LNG projects in 2020 and paying outrageous rates for rental housing. 

I hadn't really considered buying houses that need a lot of work because I have no experience with hiring contractors for large projects, but that might be the only way to get a cash flowing property here right now.

If you use a HELOC I would do a project where you can pay it back(BRRR, Flip) and not keep a balance. 

I would definitely take care of the cracked/chipping ceilings.

Always ask for references and examples of similar projects (pictures)The Red Flags you have to Avoid:Lowball bids (too good to be true often is).Poor communication or delays in responding.Hesitation to provide references or sign a detailed contract.Cash-only deals or pushy behavior to secure the job.

On the walls, ceiling, around windows, etc? 

Also, for the experienced BRRRR folks out there, are you holding true to the 50% Rule on Cash Flow on each project? 

So on my Canby Oregon project 90 homes I did the PPM route with only 5 investors where I own majority and it is me that gets the bank loans etc and runs the project investors are all passive.

Keep in mind a few things - many major markets currently have a glut of multifamily projects so you may be competing with large apartment complexes with amenities offering incentives in a competitive market.