All else equal, do FHA loans typically entail higher rates when compared to traditional mortgages? 

Being that I'm out of state I'm not entirely sure what rehabbing a property would entail so I feel like something turnkey may make more sense but I'm not sure, I could be wrong.

What exactly does it entail to benefit investors?

Not sure what "everything else" entails but you're most likely underestimating costs , overestimating resale value or both.

@Rob Beland @Jeremiah O'NeillMake sure when you are calculating your land values you are using an "improvement ratio" as that's how you can determine your land values and provide the best support for your assertion.

If you have rental properties and have seen a lot of homes in person then you at least have cursory knowledge of what it would entail to flip.

Do you mind sharing what this entailed and what was involved in this process? 

Of course, any use of leverage entails additional downsized risk.Also, real property ownership has tax benefits that notes do not.  

We have to be prepared when those laws assert themselves, despite our denials.

Practically speaking, you might check your disclosure rules, now that you have an internet record asserting that you believe the house is haunted.