The point is that the difference could be minimal if you just proactively replaced items.

It seems like a total waste to not use the money on a property (it’s a 4 to 1 match grant - so I saved $2k and will be given $8k), so I’m looking into using it for an investment property now.

They want certainty of closing and a buyer that they know can and will get the deal done with minimal hassle and no renegotiation.So submitting offers without touring the properties isn’t doing you any favors.

Often turn over rate is a function of length of occupancy (I believe turn over rate is a function of (quality of tenant, thought into minimizing turn over rate (types of flooring have significant different expected life spans), and length of occupancy)). 

I say this because that's probably where the most money is to be made but it will also be more risky and more work and headaches on your part.If on the other hand you're fairly conservative (financially), want somewhat of a hassle-free investment without taking much of your time, just pay market prices for a really nice house in a great school district even if it has minimal cash-flow.Over time, you will get great appreciation and build wealth through loan pay-down even if there isn't much cash-flow.I personally do both plus a number of other things for diversification reasons.

Am i wasting time doing this or is it a good idea??

Just like in our market permits cost 40k per houseand the planners and city gods wonder why we can deliver a house for 200k all in  not possible in our market 300 to 350k is as cheap as you can go.PS I tried buying warrenties when I was buying 50 to 75 court house steps houses a year.. waste of money.. 

My new strategy is to acquire a buy-and-hold SFH to rent out in Indy with these purchase filters:$50 -150K range Young professional neighborhoodTurnkey or only requires minor/cosmetic repairsMeets the 100:1 ruleBuilt after ~1980 (to minimize repair costs and appreciate into the future)I have $50K to available for this endeavor. 

Fortunately, operating costs are extremely minimal as I am self managing.

@Gene Hacker No I didn't pay any fees but I can't help to think it was a waste of time.