If you over leverage and dont have amazing cash flow on your first couple deals, you might get stuck in the mud. that would be the worst situation.

The odor is VERY strong and has small piles of mud scattered throughout.

Many Tenants may bring undesirables into a Safe HOW Area...

There are lots of affordable properties in Flint and Burton but their schools are undesirable and the value of the homes seems stagnant.

No lease is great, then you can boot them if they're undesirable or get them to sign one if you want to keep them.

A lot of businesses are 'sticks in the mud' when it comes to working from home and stuff like that. 

You need to understand your market and adjust that % for more desirable or undesirable areas. 

What is the purpose of a background check if not to rule out the undesirable?

Clear as mud that is I'm sure.Lets say 75% of ARV on a property is $75,000 (making the ARV $100,000), and the property needs $10,000 in repairs, and investors in your area are willing to pay up to 75% of ARV less repairs for their properties; the most your end buyer investor will be willing to pay for the house is $65,000.  

I moved from traditional real estate and never looked back, no more leaky toilets, or undesirable tenants...