or throw away, unwanted vacation plots for $25. do these magical unicorns REALLY exist or are they just guru lies.... ( PS: I probably already know the answer...

However dealing with unpleasantness is one way REI can create value/equity.

You''l have issues of commingled assets in your business, tax issues, accounting issues and in the end you can have unwanted legal issues. :) 

I recently had an unpleasant experience with a seller who was also the agent.

Oh yes also, unwanted guest staying in your vacant property is a issue up there.

So it wouldn't add to your costs, just an unpleasant way to buy a property?

Besides not having to worry (as much) about tools and equipment being stolen, the values are higher on the back end (selling) so it makes the whole project easier or at least more enjoyable to work on.You can certainly do rehabs in tough areas but the #s will be smaller (not to rehab, but on the ARV and rents) so you really need to make sure you don't pay too much when you buy because, if you're not used to the area, you may be unpleasantly surprised by smaller #s on the back end.Another thing is that, somewhat counter-intuitively, sometimes the building inspectors in tough areas are actually pretty tough/demanding themselves.

I'd like to avoid anything that would make it unpleasant to live there (odors, damage) whereas we're fine with "preference" items like countertops, flooring, paint. 

If the numbers only work at the current assessed value, you could be in for a most unpleasant surprise.Even at $117K, the taxes should be around $2600 less a homestead exemption - maybe $2100.

You will learn a lot in the beginning, and some of those lessons will be unpleasant.