Often you are getting a pretty sizeable discount for your efforts, resulting in both captured equity and cashflow.The best ugly properties go quickly, so when I was looking, I got in the habit of searching daily.  

Ultimately you will have to sell your house at a discount. 

It’s a solid way to build experience and confidence without diving straight into heavy competition with big players.Question: What’s been your biggest challenge in deciding which market to focus on?

If they are good, they don't have a problem finding work so doing your project at a deep discount makes no sense for them. 

Every dollar saved in utilities is a dollar straight to the bottom line. 

So if the property is not a value-add or steeply discounted I would not do this. 

As others have said, you will get lent more money usually with rehab involved than on a straight acquisition loan.

There are accountants who say that applies to the opportunity to discount sale and/or basis shift to further lower the tax bill.  

  $500 off up front is a one time discount, the $40/month lower is the gift (to the tenant) that keeps on giving. 

there are multiple cities across the Midsouth that make for solid investments and you are still able to even see some cashflow even in today's environment without buying just straight up high risk properties.