Either it has been very poorly managed, the property is undesirable, or there is something else going on.  

If your purchase price is $60k and the structure is worth (discounted) 120k, that means that the land value is negative $60,000 - somebody will basically give you 60k to take the land, because it is so undesireable.If the neighborhood is so undesireable, that someone is willing to give you $60,000 to just take the land, you will have a hard time finding a tenant, who is willing and able to pay top dollar - they would rather live elsewhere.Second, cashflow is the most important, but often not the biggest of the 4 income sources you have as a real estate investor.

This original post was not about getting to into the mud, just the real estate predictions.

Having them live in the house while trying to put up sheetrock, mudding and installing flooring etc will be very difficult with someone living in it. 

Some of the disadvantages are that you could possibly get stuck with a unit full of tires, or some other undesirable items that you have to get rid of.

Make sense or clear as mud?

However, from the resources I have read across the internet and here at biggerpockets, it seems that the politics (w/ condo boards, bank financing, reliance on other units) make it more of an undesirable property type for the rehabee.

I live in East Bay and mainly investing out of state.I did cross fit for years before moving on to mud races like Spartan, Tough Mudder etc.

Unless you want to buy in super undesirable areas and even then its tough.

Does anyone else have problems with these wasps (they build a termite-like mud tube).