You can buy a foreclosed home using conventional financing as long as the home did not sell at auction and is in habitable condition since most lenders will not do a conventional loan on a run-down house that needs a full gut rehab. 

So even assuming that San Diego was inhabited by the top 5% US income only (median income at 160k), only 1% would be explained, Appreciation Effect 2 - mortgage affordability +2.7% since 2000, +3% since 1981Since 1981 to now mortgage rates have gone from 18% to 4%, this contributes an annual growth 3% per year to the mortgage can afford.

I'm following this conversation, looking to do something like this in Detroit except my plan involves a contractor willing to sleep in an inhabitable residence :) 

Each unit needs some TLC, but currently inhabited.

The reality is they almost always fix these things or discount them as the house could not be inhabitable without.Also opens a can of worms as far as where and how many breaks there are.

I believe you'd have to dump a bit of money into the sub 30k houses to make them inhabitable, unless you stumble on something that is somehow in decent condition.

I bought the property to initially live in, was unable to due to my job, then decided instead of paying for a property I'm not inhabiting, I might as well get someone else to pay the rent and build my equity.

The most common crime in our neighborhood the last few years has been carried out by suburban junkies who come into the neighborhood, break into vehicles, and get caught.Rather than classifying areas containing 600,000+ inhabitants as war zones, go for about a 2 hour drive around Cuyahoga county and verify for yourself.

So if you take as fact that the promises made before the election will not be carried out, you're then left guessing as to what will happen once Trump begins inhabiting the Big House.

FHA tends to be very insistent that the property is inhabitable without any expenditures by the buyer.