But it can really help offset costs and pretty good return on investment at that value. 200k in philly puts you in Class C real estate at best, and you likely have to update it somehow. 

Hi Shayan--Here is the thing...when flipping for me, the class of neighborhood, location of property in that neighborhood, and amount of renovations really matters. 

My point being, having a reliable team here is a must.Dialing in on what class neighborhood and what kind of property you want is as key as your metrics, especially given that much of our housing stock is ~125 years old --- at least in the city.

A few rentals along the way but realistic on returns 5 to 6% for solid A/B class is where we like to be.

Remove those and the Net S8 Rent will be market rent.Typically, the only way to get more than market rent is by buying in Class D areas and hoping a S8 tenant will live there instead of a Class C area.Keep in Mind: TENANTS QUALIFY FOR SECTION 8 FOR A REASON!

This is a B class property. 

For out-of-state investors, I suggest considering a C-class turnkey single-family home.

. - All they've got to learn is to save some of their income to pay their bills on time and they could then afford to buy a home.Instead, they spend every penny they make on things they don't really need and then blame everyone else.Take a look at a Class C or D tenant's bank statement to see the frivolous things they spend their money on and you'll better understand our society's biggest problem.

@Kris Lou Many factors go into PMC pricing:1) Locality (city/state)2) Neighborhood & Property Class (time to manage Class A < Class B < Class C < Class D)3) Property condition (slumlord properties hard to manage)4) Number of units (some economies of scale, but not as much as owners think)5) Owner expectations (some owners really want a personal assistant!)

One effective strategy to maximize unit potential is to explore opportunities for adding extra units, especially in C-Class properties.