Keep in mind that many of these cheap homes are selling for less than a third of their insurance replacement value, which really means that the land has negative value - let that sink in.Most buyers who can actually qualify for a mortgage will get a PA for $200-300k and desperately want to upgrade their life.

My thought: 70k won’t change my life.

Well when life puts lemons in your mailbox, make lemonade with them.

However as you correctly point out this is far more risky and or its risk capital compared to buying a income property.. but the reward can be strati-spherically higher .. not just a little bit but it can be life changing profits on some of these deals.

It makes a huge difference if you can solve that problem for them.If you get the sense that there's someone who will NOT leave and make life hell, then it may be worth getting out of the deal (I don't know the specifics).Good luck!

Makes your life as a property manager easier, and provides consistent rents coming in.

Using a 21 year life to maturity for the Teak.  

However, if you ask me that in ten years....the city life might drive me out there! 

We did another tranche at 40 so by then he will have gone thru life by then.  

about managing rentals before you start bleeding cash and ruining your life.