I bought this property with a private interest free loan from a friend. the person i bought it from need cash fast so i offered them a low cash offer and they accepted.I had enough money saved up to rehab the house with my savings.

Avoid leading with a low offer or mentioning how long it’s been listed.

Not sure where you are looking but we have seen a 25% reduction in pricing this year.

@James Tobin  yes FHA will be a very low downpayment option for you.

Across the board, the worse the neighborhood, the better the cash flow, the better the neighborhood, the trade off for tenants base, better schools, low crime, etc etc.

Flip side, for a third of that you are trained to find properties using creative finance taking over existing low interest loans that cash flow and you are buying in decent neighborhoods with every day lunch box Joes that have kids and go to work and pay rent on time. 

I do however think as things clean up systematically, cashflow will improve and the benefits of low capX exposure in near term and appreciation will work out.

Locally my observation is that the need is more for low income young and working vs college student.

I have done it successfully on my last 2 buildouts, maybe 3, but only because I was able to acquire the properties at a very low price and I did all the work in-house (myself and some hired hands on staff).

I too have feelings and thoughts about the programs.After I get past my feelings, I have found that I consistently get paid and vacancy is low.