Quote from @Caryn Seifert: Why do you think the fees are low? 

FHA 203(k) loans are good if you plan to live in the property, offering a low down payment.

That's low, but not zero!

This'll mean low money down and usually a good interest rate.

If he has low income or is risk adverse pay it off.

You also may have leasing fees, which can be as low as a few hundred fixed, but more often are a month rent.

I would be very hesitant to pay off anything with such a low rate - the sub 4% rate I wouldn't touch. 

I like smartcore from Lowe's, natural wood look with texture.

When we look at zoning and we see the density available, it starts to open up new possibilities for creating housing that is somewhat affordable and also building low cost units for example a second story edition could cost as little as $180-$200,000.

However, some investors see potential in these markets because of low entry costs, steady military demand for housing, and decent cash flow from rentals, especially if the area has stable, government-backed tenants like service members.