Property out-of-state would be ideal to be in an area that would yield quality tenants so probably looking for something around B-class that still offers good passive income. 

Last month I purchased 2508 Ashley Rose Terrace in Henderson for $525k and tested a $2,995 rent rate and secured a quality tenant at this higher rent rate.

I would suggest finding options that look nice, and are decent quality.

I am somewhat concerned about timeline on getting quality tenants that would be interested in rooms not a full unit to themselves. 

They will then give us a receipt that shows the price we actually paid.If you actually got the quality of materials you paid for, then honestly, who cares. 

My question: What has been your most successful system for producing quality real estate leads to enable these BRRRR/Flip cycles? 

The house I purchased was recently renovated so rehab wasn’t a factor in this deal, but being a STR I wanted to go with higher quality furnishings that would stand up to more abuse. (2 years in and that has paid off so far) But I went about 20% over my estimated budget.

We have seen both cases, renovated vs not renovated apartments from our clients and the renovated Units rent for much higher returns and the quality of the tenants are much better too.

I started educate myself in real estate, and personal development by listening to podcasts and audio books.

Calculating an ARV seems to be an easier task, because I can evaluate the sale prices of similar properties in the area, with respect to size, quality and location.However, estimating rehab costs is difficult.