Purchase price at ARV - repairs, plus 3% per year.The low down payment is undesirable because it means thin margins on these deals in the short term.

You're only paying for mud and a talented drywall finisher (unless you can do it yourself).

Mud room? 

As you mentioned, I would need a property management company as this would be impossible, and undesired, for me to do being so far away.

They actually offered a no-fault exit (albiet with 60 days) and a rent reduction, but managed to make you more upset by their tone and threats when there was simply no need to do that.Same advice as before really, unless you want to get down in the mud and wrestle with the pig, so to speak, maybe just put in writing you consider the lease broken, the tenancy at will and you will give proper notice according to CA state law, nothing more.

Children, mud, pets and urine from pets, children and in some cases the elderly. 

What if you just want to get rid of an undesired tenant? 

But, as is life, people will think that other people care about their life and assets, which creates opportunities in “undesirable” areas for actual investors.

So far so good, and it required NO mud work which for me was a plus since i can easily replace down the road if needed.Hope this helps!

He bamboozled them (outright lied) into thinking that their house was undesirable and seriously low balled them.