Purchase price: $160,000 Cash invested: $40,000 Sale price: $268,000 I bought my first house in Kalispell Montana as a long term investment and possibly a rental.

If you're goal is a long term hold, you're almost certainly going to do well even with a market rate deal in any of those states.

Start to evaluate deals based on the income approach and you'll do much better long term investing. 

@Joshua MiddletonI am very familiar with that street, good friend used to rent Long term on it for about 7 years.  

For a long term hold, time and my value add will create my spread. 

Sometimes the long term capital gains are palatable and it may make sense for you to pay the tax rather than force a bad deal.

It was a long and expensive journey, but eventually, we won the court battle and were able to move them out.After they were gone, we cleaned up the house and decided to list it as-is instead of flipping it.

As long as you are on the loan, on title, and live in the home for 12 months minimum, then your non occupying coborrower can qualify for 5% down at owner occupied rates.

One of the biggest issues is probably borrower default—whether due to mismanagement, market downturns, or unforeseen circumstances, lenders can end up in long, costly recovery processes.

It possible that the market will stay low for a long time.