Even if a title company were to manage the setup making sure all parties are paid, the cheap debt and cash flow would not be enough to be enticing to any investor even if midterm rental could yield a healthy return. 

How much weight do you give to the cash flow benefit of cheap debt when the property is priced above market?

It's amazing how cheap it can get when you're paying physical cash and having your contractor pick it up at the warehouse.

For markets that are "cheap" and provide cash flow on day one, there is a reason for this.

That is tight leverage for an investment 2nd position loan.A private investor might be willing to do it, it's not going to be cheap at all & will be short-term money & will not be a line of credit to take out at your liking.What is your rate on the 1st?

Most all of the cheap rust belt cities are going to have declining populations.

Am I being cheap?

I don't think the future will be kind to the investors who bought cheap houses in a big community of other investors. 

If it's cheap, high crime area, proceed with caution. 

Currently there is that extremely thin, hard, cheap landlord carpeting (and also an area with cheap thin stick on hard tile squares).