And isn't that masked by measuring house prices/rent, especially if price & rent increasing are equally outpacing incomes?

One more problem we found was that when we painted the house a darker blue, the siding actually started to melt and peel away from the house due to the sun.

Keep ventilated when applying bleach solution and use face mask.

This means you have to extend and tilt your neck in order to see, hence my sore neck.Do me a favor: always wear a mask when you go under a house.

IF the siding is peeling in places,,,different story. 

You must be talking about condos and houses in Mississauga Brampton and other parts of Peel Region because York Region all the way up to Sharon Ontario is mostly sold out on Single Family.. check the new construction websites yourself. 

Do you advise....Buying a sibling out, peeling wallpaper, painting, changing counter tops and appliances, new carpet, new fixtures?

The risks usually are masked with phony numbers and 1000s of miles of distance that only a non local newbie could fall for.

Fast forward a couple days and more conversations and his family coming over to check it out and we are under contract.Actual Numbers:Sales price $150,000Purchase price: $86,000Loan/carrying costs: $5160Attorney fee for contract: $1500Actual repairs: $6020Actual profit: $52,670Repairs, if you are wondering were:$1,100 siding for garage installed by me and my husband instead of hiring a contractor, we also skipped the rollup garage door and left the wood doors that swing open$3,000 new wood stove, installed$1,500 new electric panel$100 misc (4x4 post I had to replace and paint for trim with peeling paint, GFCI outlets)$320 stuff I'd already bought and can't return (ie paint).

To qualify for FHA the property must be in pretty decent condition and can't have visible maintenance required(peeling paint).