But in the neighborhoods where I invest and have lived, you can still buy a 3/2 with a two-car garage on a 1/4 lot for less than 80K.

Thus the greater fool theory.Personally, I steer away from D class properties and try to go to C+ to B- areas where you get good hard working people with families that want a safe place to live.  

@Michael Keffer your strongest position and calculation is when you have a full year where the property has cash flowed

We were able to gather a group of subcontractors for different specialties where I was technically the GC.

@Amber WelschWe financed a project where the borrower retrofitted a property with two very large (8,000 square feet each) houses in a exurban area into luxury room rental, each with a large bedroom and attached private living room.

It also will depend on your investor profile, depending on where you get your $ will depend on what they find acceptable.

Anything over 4 units is commercial where DSCR usually goes up to 8 Max in most cases after that its strictly commercial or SBA.

Try to find something closer to where you live and don't rush.

I am a local realtor, and my fiancé and I run a property management company in Indy, where we manage 60+ rentals.

Have a couple of small rental properties in Montgomery County where I grew up.