Therefore these rehab projects scream flip, but flipping is a job versus residential RE is not passive but it is far less effort than flipping. 

I am focused on Detroit and can tell you everything you'd want to know about the market there.Our bread and butter are SFH's that we buy off-market for $50k-$60k, put $20k-$30k into a rehab and then rent for $1,100-$1,400/mo depending on bedroom count and location.Folks will scream there's no appreciation to be had in the Midwest but that has not been my experience and I believe there are a ton of tailwinds that will continue pushing prices higher in the area.I personally invest in Detroit from California and will continue doing so until the numbers no longer make sense.

If you find a screaming good deal, you won't be short of buyers.

However, since the inspection report will scream out "BUYER BEWARE", etc, the smart thing to do is remove it and maximize the sale.....

I sold Palo Alto in 92 ish in the trough but still sold for over double what i paid for in it mid 80s and bought in napa in the trough house was 2 years old and I bought it for 20 to 25% less than the folks. then it doubled and sold it in 01 and we were in a mini trough but bay area or at least Silverado was not really affected but i got a screaming deal on my PDX home that then doubled etc etc. 

I have seen crazy BS lawsuits over the years over nothing, just a tenant screaming they have been discriminated when we all know its BS.

To most agents that just screams “timewaster” who doesn’t know what he’s doing.

I inherited a tenant that was playing loud music at all hours of the night and having friends over where they would have weird screaming parties (drugs maybe?) 

It's true that it takes more "dollars"  but is simply screaming that the dollar is now worth so much less. 

OrIf someone wants $350,000 for a $275,000 house and you can get it for $10,000 down at zero interest, that's a screaming deal I'd do all day long.