I still think it is a good area to invest in despite the increases in cost.  

Most sellers are going to want 20-25% down as it’s going to cost them 10% to sell.

Strategies like living in a duplex or triplex, adding an ADU, or renting by the room can help maximize cash flow while leveraging FHA or VA loans for lower upfront costs.

Courtesy of the video, criteria to consider include Deal Type, Management Plan, Business Plan, Financing, Asset Class, Ownership Structure, Property Class, Location, Purchase Price, Rehab Costs, Risk Target, and ROE Targets.

Maybe that is gross profit when you sell it, but what about the cost to build it?  

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Even if they don't realize how much money you're costing them now, someone will tell them eventually and I don't think your canned wholesaling response is going to do much to repair the damage. 

They are a bit undersized but perfectly suitable for 1 bedroom apartments and the slight increase in costs is far less than the costs associated with venting the units properly.

@Ben Syzek with $50k, you're probably looking at a property with a total cost (purchase price + reno) around $250k.

The very tragic LA fires have generated a lot of discussion about insurance costs.