Within neighborhoods there are a wide variety of conditions....block by block.It surprises out of towners that you can literally have an area where on one side of a street it is desirable and you want to invest but on the other side of the street, you don't even want to walk over there, let alone invest.

I do realize that many have made decent money at the very low end of the market, but that takes quite a strong stomach, and I believe also was a function of particular market conditions which aren't likely to exist again any time soon (IE these properties got absolutely crushed in the downturn of a decade ago and were picked up for a song.

What condition is the property in?  

Which I thought was odd because the structure seems in good condition.

The market rent I posted was as-in condition, not pro forma.After expenses I will be paying market rent for a unit I am occupying plus gaining yearly equity equal in an “up and coming” community. 

"Fully rehabbed" properties that I would be embarrassed to call turnkey in the condition at which they are being sold. 

Here are options including install- 1/ used good condition 3 year old Air handler never opened, 8 year old used compressor, wireless thermostat - $2400 2/ $2700 for 3 year old air handler never opened, 1 year old used compressor, wireless thermostat 3/ 3 year old air handler & wireless thermostat - $17004/ we supply units - he installs them for 1300 5/ everything brand new with warranty and install for $4200Thank you.

Is fha rejecting it due to condition, the 90 day flip rule or your loan qualifications?

Not sure how old the home is but you definitely want to check out the roof, electrical, water heater, heating and air conditioning and plumbing at the very least.

Although I agree great cash flow is great, having someone else pay off your investment (thus "buying" you equity), and having depreciation to counter your income (conditions apply, so do your homework!)