Strong rental markets with low vacancy rates are ideal for long-term holds, while areas with high ARV growth are great for flips.

A full gut and roof HVAC windows etc for 100k seems very low.

DSCR loans are not that low and regular hard money loans will be in the double digits.

And even if the tenants chooses to stay in your property for 2yrs, the damage they may cause will eat away all of your cash flow and leave you potentially upside down.

That said, if you only have a few "residential" rental buildings, most direct carriers can get you pretty low deductibles on their stand-alone policies (State Farm, Allstate, Farmers, Nationwide, etc.). 

I would tell people today that if you buy a primary residence expect to stay in that home for atleast five years, especially with a FHA loan which has lower down payment as the current forecasts for home appreciation or very low which with closing costs on the buy and sell, it will take several years to have equity in the property and enough to be able to sell, so that is something also to consider.

The problem with averages is that a large number of high or low value properties can skew the figures either way.

I am still not sure how he gets positive cash flow while repaying 5 year loan back, unless he charges buyer in excess of 17% for 30 yr fixed loan and pays very low interest to PML lender.

Where do you think a rehab is more likely to net the better sweat appreciation the high property value market or the low property value market?  

Section 8 is best used as a risk mitigation tool for properties in super low income, high crime areas.