So even the worst of the worst lemons can even be turned into a delicious fruit punch vs this fkry of "notes" where what, what do ya do now, right..... 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

If I were in your shoes, I’d consider a few key factors before diving in:1.Risk Tolerance:Ask yourself, “If the worst-case scenario happened and I lost this money, could I recover?”

There is no demand at-all for these properties.So in a worst case scenario as you state, the amount of money to be lost may be smaller, but it has a much higher probability of occurring than say a California property not appreciating over time.  

Anything more than a gut job is a plus in my book, I assume the worst. 

The worst thing here is people who he recently took money from - yes some people are still being conned out of their money - lost it all to the court.I can see him working on 4 houses at the moment, and each ia having work performed out of sequence with 3 of the 4 still having no front entrance door installed, but they have still finished the internal walls and laid the flooring.  

If information is limited, use market-based assumptions to run a "worst-case" analysis.

Worst case, a very expensive clothes drier. 

I love your approach of being conservative with underwriting and planning for the worst while hoping for the best!

As for a downward shift you can always lower your rate (underwrite a worst, middle and best case scenario), Make sure your rental stands out from the crowd (easy to do in Hawaii since most owners don't reinvest in their property).