More expensive properties are likely that way because they have higher appreciation rates, higher rates of rent increases, and a better class of tenants which produce a less volatile and more passive cash flow stream, and a premium is built into this higher price as a result.The differences could be very difficult to spot too if you are not intimately familiar with the market ... even in seemingly the same market, a property may trade for a huge discount to a similar one literally a few blocks away ... it MAY be a great deal, or it MAY be that all the locals know that the cheaper property is just on the other side of the "wrong side of the tracks" and even though it is only a few blocks away it is in a much rougher "war zone" neighborhood with drug dealers, gangs, theft, homicides, etc running rampant, but you as an outsider looking in may not realize that looking only at the prices, pro forma NOI projections provided by the seller, pictures, etc. that the lower price is justified and not a great deal ... this is one of many reasons remote investing can carry much more risk ... caveat emptor. 

I work with a lender who lends with an ITIN for mortgages (with hard money like terms), and I drive past a ton of dealers who advertise they can get you a car with an ITIN.

@Vic Vega when you are in the flipping business, the IRS considers you a dealer rather than an investor.

I have a loan on it with a $23000 and it is probably only worth 20 on the private market and about 16-18 thousand to a dealer.

Glad to hear there are other professional drug dealers killing it in Real estate. - Aaron Nelson, Pharm.D.

These programs are usually offered through a Broker Dealer and they can provide 10 year projections, possible cash flow, they have already secured financing (which is usually non-recourse to you, the investor) and I would be happy to refer you to someone in Chicago can offer these solutions if you are interested.A reverse exchange can make sense if you are very concerned about finding a replacement property but it is more complex and a more expensive transaction because there are many moving parts.

Don't like obvious drug dealers?  

The guy who bought the 50 houses sold them all eventually over time for $3,000-$7,000 to local drug dealers and made a big gigantic return in a fairly short period of time.If you want to succeed with $200,000, one way to do it is be patient and wait for a ridiculously desperate seller. 

It sounds a little too much like a car dealer shakedown.

We demand you have 3rd party dealers.