OK Thanks Chad.. yes now that you clarify that and I also work in the low value asset sand box but only to Investors who have money to turn them around I would never count on those owner occ's to cure at least at any large % to easy to  walk  and the properties as you mentioned many will be functionally obsolete and economically obsolete so they turn into your basic zombie house that local wholesalers go for ..

Trenching, utility connection charges and etc. add a huge cost handicap which makes the economics unworkable in almost every case. 

Hello Vivian, there are a lot of opportunities to invest in Tulum downtown, the beaches are occupied only by hotels and restaurants, this is the best time to invest in a pre construction unit at lower price than the finished units with a difference of 25 to 30% bellow market price, check this website to view some opportunities www.tulumrealty.net

If you want appreciation, identify markets with expanding industries, positive growth trends, and bright economic forecasts.Columbus, Ohio is a great market to consider if you're looking for appreciation markets that still cash flow.

Local market economic conditions. 

The best way to find a handyman is to look for business cards at coffee shops and local restaurants.

Regardless of paper returns, as you noted, these are the homes located in areas that suffer first and the most in an economic downturn or other times of distress. 

Unfortunately, I suspect we know what's going to happen to them especially if there is any downturn on the lower economic rungs because of tariff wars or similar.

Those that deal with the 12 1/2 % remaining have a chance for much better success OVER THE LONG TERM, in all economic environments.  

One thing we, as humans, are consistently bad at is predicting the future - especially when it comes to political and economic shifts.