Hi There - We have had several clients make the numbers work here in Chicago typically with either FHA 203k and home style renovation loans.I continue to remind everyone that a single or walk right now will be a double, triple, or even a home run down the road. 

Then the buyer walked because he actually didn't have his financing lined up so it was all a game. 

@Dennis GallagherAs for the 50% Rule (where your expenses equal about 50% of your revenue) - I might argue that the flaw in the theory is you will walk away from many great wealth building opportunities just because it doesn’t meet the formula.

It is close to the downtown area but the majority of area is bigger lots and on the other side of a prominent hill that gives it a more out in the country feelFoothills is the most exclusive areas with higher price points and lots of upper end shopping and diningMarana and Oro Valley are the newer "suburban" areas of Tucson that have the laid back walking and biking paths, golf clubs, snow bird / retiree type activities that draw visitors in and then get hooked and eventually buy homesIf you haven't tried Tucson yet, there is quite the variety and with snowbirds leaving, there are plenty of current STR's ready to host you as the summer warms up. 

As is was mentioned above Fannie/Freddie require 12 months before you can use the new value to walk away with cash.

Also showing them how to do it and where its all located during move in walk through and it being on the move in check list that everyone signs.   

The note investor who thought that after the debtor was late with a payment he could just walk in and take possession/ownership of the property without foreclosure proceedings3.

So I would give all of the their walking papers, bring your unit up to market or slightly below, and get it rented to a good tenant.

At the time I looked, 20 or so years ago, the problem with smaller down towns is the proliferation of nearby strip malls, where the stores are surrounded by a large parking lots, and for laundromats, attract more customers as they can park easily, walk to adjacent stores for shopping, snacks, and browse newspaper and magazine racks, which explains why they do better, there's more customers.

"Just a little damage" Walks flat, needs roof and cosmetics.