Because of the quality of tenant in these areas, higher rent ratios will produce lower cash flow than higher class areas.- nationally, the highest rent to value ratios are in areas with poor rent growth and poor appreciation.  

Our team discussed multiple investment options with him, including new construction homes in nice areas that likely attract better quality tenants.

Your biggest problems here are going to be how to properly qualify someone, what to do if someone stops paying, footing the bill if you have a big repair item, finding quality and reasonable vendors/contractors to fix things, and keeping track of payments.If this isn't you, give me some more context of where you're at and I can give some better insights. 

Strategic Purchase: Acquired a discounted double lot below market value with a $17k impact fee credit.Custom Design: Built a 6-bed, 5-bath home tailored for co-living or multi-gen use, maximizing tenant appeal.Efficient Management: Managed construction, and self-managed operations to minimize costs.Premium Marketing: Furnished the property and used multiple platforms to attract quality tenants quickly, achieving full occupancy.What was the outcome?

High-quality listing photos are essential, so hire a professional photographer.

Then, obtain quotes from at least three actual contractors. ( insurance and all that depending on the work)You'll likely encounter three types of contractors:The Super Expensive Guy: Highly skilled but often in high demand, resulting in premium pricing.The Average Guy: Offers good quality work at a reasonable price.

I'm not very familiar with these markets but I've found Columbus has great tenant quality on average, less property crime, and great appreciation potential.Any market can offer killer cash flow with those lower purchase prices, but in my experience, you're more likely to run into challenging tenant situations and higher maintenance costs that eat into those returns.

If you're talking Commercial property then the higher your Net Operating Income goes and the leases or quality or renters you have, the higher your value goes. 

When you have high quality tenants you want to keep a balance between appropriate rental increases and tenant satisfaction.

If you can get hold of a reliable and honest builder, you will be fine (that does not mean you will not go over budget).Low CapEx, Little Hassle, Quality Tenant, You can manage new construction out of state for the first 5-years, Tenant May Stay longer (because is a brand new house) are few benefits of new construction.You may not be able to get close to the 1% rule though.Goodluck