I have built in the past and I do not understand how anyone can build a house for 250k that will last.As an agent I focus on high end relocation clients and many are positively surprised by the build quality compared to the south.

I think the first place to start is evaluating quality deals.

Outside of that, do normal due diligence like appraisal and inspection and you're risk exposure is fairly low.

@David LewisRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I’m based in Portland, Oregon, where residential investing seems challenging due to landlord-unfriendly policies and negative cash flow on higher-quality properties.

Hi Erica, what I've notice is that high-quality (high-priced) washer and dryers don't out perform other based price models in rentals. 

Historically, full service management on the coast has been costly but in recent months management rates have come down and quality has improved.

I wish I could say that I'm venturing into real estate investing for some benevolent purpose like providing low-income housing for the needy... but financial gain is certainly my angle lol.

Right now, I concern myself with the quality asset.

So if you discount a small amount to get rolling, that is something that can work, but don't want to stay low for long.You will start to get the dregs staying at your place and they can do some real damage to the place.