We do them, but they aren't cheap and your LTV will be lower that a HELOC on a primary residence.

Alternatively, you can offer more such as central air when the competition doesn't have it.Avoid areas with a lot of new rental deliveries.

Thats with my cheap subs and me paying them cash using a GC this would be a $70k rehab and negative equity. 

I've even heard of GCs using auction type settings for returned items at Home Depot and Lowes for steep discounts.I've learned a lot about the GC game as I was up close to over 40 projects last two years and some went well and some did not and when they did not it was all Contractor related.If a GC isn't sourcing cheap materials at the same time milking the hell out of his 150-200 per day workers, then you can find yourself eating into your margins real fast. 

Based on my experience, you either pay some more but get a high-quality service, or you have really raw but cheap software.

For small properties such as a duplex I don't bother with making sure the two delivery points are registered with the post office.

If you do cover it I would cover it in sheet metal or something simple and cheap.

So the cheap homes in lower class areas that get the 2% rule will have the same cap ex issues and costs as the homes in higher appreciation areas that will need the same cap ex.

With real estate prices soaring sky high in Austin and Dallas, investors started looking at Waco's cheap housing market as the new forefront in Texas for great real estate deals. 

You can use Spokeo for cheap to lookup owner's numbers. 6 deals out of 191 was extremely good!