@Joel W.The only flaw in your conclusion is you are taking Schiller’s national number whereas real estate by nature is local.

The flaw here, i think, is your expected purchase price against the expected rental income.  

This policy will provide coverage for uncovered contractors IF they don't have their own work comp policy.  

I have a property that has a few minor flaws,  appliances not working (dishwasher/jacuzzi tub), vanity and medicine cabinet paint peeling, scuffed floors. 

Even title will likely not uncover any zoning related issues.

I will not walk away from any flaw in the property itself where costs are definable.1) Is it possible to get solid bids that stay in line with the budget (and appropriate margin for error/unknowns vs ARV2) Physical inspection must reveal the full scope of the issues not don't enter the dreaded "we won't know till we tear into it."

I've read many past posts that expose flaws with this method that I am hoping to negate by getting great tenants, but I was hoping someone from the community had a different/better method just in case this does not work.

You submit low offers to uncover if there's motivation to sell fast at a discount. 

The flaw with the theory is doesn’t work in all cases.  

- DevonDevon,I think your strategy has a flaw: If you want to build a portfolio of rentals, buying them, fixing them up, and selling them does not accomplish your goal.