Although I know most sec 8 landlords use it because of the perception of guaranteed rents.As a small home builder I really dont know how they are going to lower the cost of new construction housing unless the govmit subsidizes it somehow.. basically the price of home components are very sticky they only go up. with the xception of lumber that will go  up and down through out the year..

Purchase price: $15,000 Cash invested: $25,000 Sub to deal - paid the seller and wholesaler $15,000 + $7500 closing costs to assume $84,000 mortgage with a monthly PITI of $575.

Usually the numbers don't work to build in these neighborhoods, unless government tax credits, etc.Do you see the problem with your two statements:"The turnover costs could/will be high"and"How much more damage could they do?"

Even with renovation costs and insurance costs the fix n flips are still making money.  

It will cost you Time, Energy and Focus. 

You can also assess a dollar amount that you value the cost of these requests to be, and ask for these as a discount from the purchase price or a concession to you for closing costs. 

The cost of moving is around $1,000.

A deal that’s “close” but not quite right can still cost you big.

Taxes, costs, eviction complexity, etc are going to be a much bigger factor in your success than anything else.

It costs the same amount to replace a roof or furnace whether the house is worth $300k or $30k (assuming a similar size).