Landlords would be free to take chances on irresponsible people with bad histories. 

This is not by chance as there are many factors that determine a market’s RE price.  

For example, if a property is clearly a rental, does that typically have a higher chance of success?

Well, of course it was a chance I had to take for the benefit of myself & my family, and it panned out - but part of panning out is knowing when is "enough", as Vicky Robin puts it. 

If the developer that you're partnering with has experience doing similar deals, then there's a good chance that they have construction expertise and easy access to deals. 

Quote from @Robert Gunn: I would also be very interested in hearing student or JV experiences with Pete and his program.I stumbled upon him by chance and for fun (I've been investing in land for years) signed up for his "free" course, which he promises after he pitches his $499/mo software system (which is basically an overpriced CRM) and then after the first "Level" in the course, you are directed to a pay page to access the rest of the "free" course.  

We don't do closets for better air flow and less chance of mold.  

A general rule of thumb though (not a hard rule) is that if a market has a prolonged history of vacation rentals such as towns whose commerce is very dependent on tourism like beach or mountain towns, then there is a good chance than those towns have established their airBNB regulations decades ago and are likely stable.

If I'm looking for a used phone then chances are that I'll be able to find a listing that's a great deal (substantially below market rate) after some time.. but with houses that wasn't the case.

Chances are your unit will look like that when they are done.