Hey @Antoine C. shoot me a dm and I will send you our free guide to Memphis zip codes, it will help you begin your search!

I would buy more efficient new boilers and then solve for A/C if needed...

Even on conventional renovation loans, most lenders and borrowers still use Certified 203k Contractors b/c the guidelines/timelines/rules/processes are almost identical. 

Both are C-Class neighborhoods, which I’ve found to be the sweet spot for cash flow.

Hopefully, you're looking to do this on a Class A property, or at least Class B.We've turned down Class C rent-by-room opportunities in the past because in our experience/opinion, you'll need someone that can visit the property weekly to not only keep an eye on what's going on, but also to "keep the peace" between residents.

Sec. 1.469-4(d)(1)(C). 

Additionally, many properties on MLS in need of rehab are in C-/D class neighborhoods which I have no interest in living/owning in (at least starting off). 

A minimum 650 credit score, as some have suggested, won't work for a Class C property.

@Hiyun Park only experienced investors can DIY everything in Class C Midwest areas like Detroit, Cleveland, St Louis, etc.Hopefully the info below will help you:-----------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Reg. 1.469-5T(c)(2)If you have more than one passive property, you can use the passive losses from one against the passive gains on another if you group the passive properties.