This is juts a guess, but imagine what house would sell for $3000, maybe its only worth the land value because the house is a wreck..!!?? 

@Ron West,It's absolutely scary and nerve wrecking at first.. b/c it's endless possibilities of what could go wrong.. but it's a mindset you need to change.   

@Charlie Moore yeah but it's because my rental was and absolute wreck and i was really questioning my "investment" decisions laying in 6 inches of water patching pipes in a blizzard.With tennants though it's not worth the stress.

Property 1 was a wreck of a small (<400’) structure (would not necessarily scare us off), above Hwy163 (again would not necessarily scare us off), with most of the lot on a very steep slope so even placing the little structure on it was a challenge. 

SaldanaI think you have heard and understood what they are saying regarding $100/door.Your thoughts on the issue with this I believe are spot on and why I don't like SF, one big unforeseen issue can wreck your year.

I just finished rehabbing a house that I THOUGHT would be a train wreck , but after we removed 100 cubic yards of garbage we found out that the house was basically sound (see "diary of foreclosing on a note".Plan for disaster, hope to be wrong.

It’s wrecked a hot sellers market, you might be able to find some relative deals there.

Let's say they t-bone someone in a car wreck and get stuck with a $1 million judgment....the plaintiff's lawyer is going to see that nice house he owns (i.e. your sandwhich lease house) and slap a lien on that. 

I'm having a real estate lawyer draft all the docs, so I feel I'm protected, but please correct me.b) the property needs more than $75K or he otherwise wrecks it and I end up with a hulk worth less than the $300K I have sunk into it.

They wreck their places and usually miss or refuse to make their share of the payment.