The older the home the more difficult (and therefore expensive) it's likely to be to restore a home to pre-loss condition2.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Your homeowner policy may cover minor repair work but probably not a large construction project. 

The defendants researched and located properties that were in the pre-foreclosure short sale process more:https://www.justice.gov/usao-edtx/pr/self-proclaimed-short-s...18 U.S.C. § 1344 – Bank Fraud18 U.S.C.

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

I still have a hard time understanding how this business model works for them, but perhaps that upfront fee covers for lack of deal flow (?) 

Lenders typically allow borrowing up to 80% of the home's value, which could more than cover your renovation costs.Fix-and-Flip Loan (Hard Money Loan) – If you’re planning to sell quickly, a hard money loan could be a good fit.

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Quote from @Tangie Pate: Has anyone purchased the Lee Arnold System and used his pre-trained virtual assistants? 

If it's the difference between $1800 and $2200 but you have to cover utilities too, not worth it.