I think that's perfect for quality properties that need little work.

Personally too, I look for the best quality and always provide that to all my clients.

The affordability and quality of life are big draws, and it’s great to hear your perspective.

Most of the time, the home warranty takes a long time to approve your repair, reach the property, and then they use low-quality materials.

I'd underwrite the deal as any other - make sure you are conformable with the quality & tenant base. 

Need to spend some quality time roaming around here to get a feel for it.Tony

I decided to take a lower CoCr for stable, high quality tenants and have zero regrets.

Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Using 50% rule (expenses excluding P&i is 50% of rent) here are the numbers;1800 (rent) - $900 (expenses) - 1468 (heloc) = negative $568/monthAt your rent point with that size unit, your expenses will ve less than depicted by the 50% rule, so let’s use a likely more accurate 40%1800 - 720 (expenses) - 1468 = negative $388/monthNow let’s imagine you self manage and you time is not worth anything (I strongly recommend believing your time is worth less or worth less than a quality PM would charge) with 8% further reduction so expenses are down to 32%1800 - 576 (expenses) - 1468 = negative $244/month. 

What was the quality like compared to local options?