You probably recoup the 5k in ARV, but Old North Milwaukee is an economically challenge neighborhood, so manage your expectations.Avoiding frequent turnover, tenants who don't pay, damage property or cause other issues is the name of the game to achive long term profitability.

It is a great tax benefit and, as any great benefit, it is frequently abused.

@Luke Bricca Yesss...my heart is really in renovating and giving houses a new life (did that with my own house pretty much) but alas I live in the Bay Area so there is nothing I can afford here....or anywhere nearby really... plus a small kid (so travel is hard), so hard to travel frequently and supervise a contractor, etc. 

Hi Julia - I'm a tax lien and deed investor in the Austin area and frequently attend the Bexar, Williamson, and Travis County auctions. 

Frequently the price is higher than a consumer would get if they contracted directly with a contractor.  

I post on here frequently.

Wherever you invest, I recommend hiring a property manager who is highly knowledgeable about Section 8 and its frequently changing guidelines.Putting down at least 20% ensures the best rates and avoids any PMI payments.Good luck!

Lower end tenants mean more headache:More frequent turn overHeavier turn costs/higher wear and tearSlow paymentsLonger vacancy between both the turn over time and finding another qualified tenantBeyond these factors, as others noted, a full unit renovation will cost about 15-20k if you want to do it pretty nice.  

I've tried everything and done everything "right" according to what everyone says (professional photos, changing rates, premier host, updating listing frequently)...well this was a surprise..."

Vrbo says they also give preference to listings that are updated frequently.