Many new investors get excited by high cash on cash returns in the midwest and buy rough properties in D areas and they get smoked by property managers, tenants, vacancy, capital expenses, repairs, turnover costs, etc. 

@Rochelle GerberHere are some of the downsides of putting real estate into an IRA or 401k.No tax deductions: You can’t claim deductions for property taxes, mortgage interest, depreciation, repairs, improvements and other property-related expenses.Property expenses: All expenses, repairs, and maintenance costs must be paid with IRA or 401k funds, and you must pay others to do repairs and manage the property.

It’s taking Seller a while to provide the HVAC report but while time passes after due diligence - Flooring cost is way too expensive at the price point they’re asking for 130K + Care of property never took place till decided to sell so I’m not comfortable any longer - Home sits on corner lot on a slight hill with crawl space - Lots of weather changes has caused the home to settle + improper supports needed. 

Quaint tiny home vacation rental that rents for $175 per night bringing in $2000-$4000 month with fixed and variable expenses ranging from $1500-$2500 month.

You probably don't want the cheapest, but it is perhaps not worth paying for the most expensive, either.

You should be asking for the lease, estoppel, and verification of all of the expenses that the owner pays for.

Quote from @Eric Prescott: Yes, I understand that appreciation often means less cash flow and good cash flow typically means weaker appreciation, but there is a sweet spot where there is decent appreciation and sufficient cash flow to cover expenses so that the property pays for itself, and that is what I'm honing in on. 

Knowing how cheap (or expensive) in finishes you have to go is huge.  

Oftentimes people get confused whether they should capitalize a purchase or expense it.

My local market (Honolulu) is expensive and limited fund, I chose to BRRRR out-of-state.