If I go by the 1% percent rule a home that cost 200k would have to gross 2k in rent, Homes I've seen typically rent for 1450 - 1550 max. 

I agree—most of these individuals aren’t paying taxes and aren’t typically aiming to own the property.

Conventional financing would be difficult as they typically require 12 months seasoning to use the newly appraised value.

Good tenants do not typically apply for overpriced apartments.

For inspectors, ask about their experience with investment properties, typical issues in the area, and whether they recommend sewer scopes, especially for older homes or properties with non-PVC pipes.

(typical California home). 

I agree on the point of your investment is not guaranteed and never fall in love with the sticker price of the offering (ie returns), you really need to look under the hood on these dealsBut active investing is not for everyone and if you do not have the time to manage your active investments, it’s not like the stock market where you have as good a chance to return on your portfolio doing nothing than hiring a manager - if you do not have the time nor ability it typically will not end well.

The extra cost is typically well worth the benefit. 

A french drain typically costs around $25-$30 per linear foot.

Typical rehabs I'm looking at in TB are looking like 250-300 purchase with renovations costing around 40-60k.