Illena I woldn't say it's easier...it just so happens that two of the components that make a property 'cheap' is vacant and ugly and you will find exactly that from the vacant and boarded lists.

JMAs an aside, while I'm posting this in the New Member Introduction forum, perhaps with the the podcast ideas component of this message the moderators could post this in the correct forum?

This leads to a unique appreciation component in property values and escalating rents as well.

A variable component such as the HOA can be a deal breaker, will keep that in mind, thanks Marc!

It's not that different than a rehab, only with a larger construction component. 

The CapEx reserve account is a component of the owners loan--just like an escrow account for taxes and insurance.

Sounds like you are taking on all the risk and won't have a performing property when you purchase it...sounds like it's missing major turnkey components. 

The mortgage broker is a necessary component of any transaction where conventional or hard money financing is desired, but seller finance deals are outside of the mortgage broker's scope.

If you take a look at my posts from November 26, 2010 (House #19, Budget Recap) and September 27, 2012 (House #35, Budget Recap), those will give you a decent idea of how I broke down the budget on two properties that started as shells (you can look at the pictures for those houses to see what they looked like before and after to see the amount of work and finish level).Please don't rely on any of my pricing -- costs will vary by location, type of house, contractors, time of year, level of finish, and a thousand other variables -- but those two resources above can give you an idea of how to approach a big rehab and how to break down the renovation into components.

This is just one component, in addition to that you will need to be able to estimate a conservative ERC (estimated repair cost) as well.