The problem is, many of these cities started out by expanding services to make it easier to afford to live there. 

Then if you are only looking for cosmetic flips then you limit your targets and increase competition because every wannabe HGTV, realtor, interior designer, contractor, handyman is looking for the same easy flip.Its doable but lots of strategy and organization, hustle. 

This eliminates some liability and is easier for turnovers as keeping lead on the inside means dustswipes for every turnover regardless of tenancy length. 

Market Research: What methods do you use to analyze and understand your target market?

But that is for easier projects to finance.The thing I would do is give him the 3% and he will get it at closing when the loan closesAs a side note do a background check on this guy.

In fact, it’s a LOT easier to find a good / great below market deal if (1) you offer all cash, quick close, NOT subject to financing and or (2) the property is one in which obtaining financing is difficult, if not impossible.Another example of where low DP is not preferable is when we syndicate property purchases.  

We're currently looking to purchase a property for <$500K so Phoenix is not a good fit necessarily for this first investment, but may consider increasing our target price for future purchases.

Any investment real estate will work as a potential 1031 exchange target, including LTRs, apartment complexes, commercial properties, undeveloped land, DSTs and so on. 

Second, pick a Class of properties to target in that market:Our OPINION for the Metro Detroit market (always verify each area for yourself!)

Markets closer to your back yard are easier to get started in.