You just have to make sure that the property you are buying is cheap enough so that there is a nice gap between the purchase+rehab costs and the ARV.

Could just be hype, but there are NOT a lot of other houses available in Brantford & this one is very cheap!)

When I looked at it for possible use in a SFR it just looked cheap to me.

For the cost of a newspaper, its to cheap not to cover all my bases.Thanks for the insight guys.  

My first thought is to buy a small multi-family which run from $45-$74,000 on the cheap end in my area (Johnson City, TN), I take care of everything other than the loan, and we split the cash flow. 

There are books you can purchase for very cheap on amazon that will teach you different strategies to use in REI.

My guess, is your going to be in the $75-100 for cheap units.  

Here's a fairly detailed academic paper on the subject:http://www.reri.org/research/article_pdf/wp171.pdfThe abstract kinda sums it up nicely -- in short, outperformance is all about timing and leverage:"Results demonstrate that while value-added and opportunistic private equity real estate investments have higher returns than core investments, their superior returns are driven by beleaguered market conditions as well as by the use of cheap debt."

@Jason Cadyle you are correct that snow removal is not particularly cheap, however in my eyes it is a necessary expense for multi family properties.

If these factors were not sufficient to discourage you there is the fact that there is a group of Real Estate investors and lots of novices that research these deals and go to the auction to see if anything goes too cheap.