The issue I see most is the cashflow gets crushed by HOA fees and the added headaches of having them tweaking rules etc. 

Yes the lack of identical apples-to-apples comps has been an issue in the area for years.

The issue is the down payment is over $250k and no one has that or is willing to fork over that amount.

Class midwest issues. 

If the house doesn't pass the occupancy inspection before closing, the municipality can usually issue a temporary occupancy permit.

One of the biggest issues is probably borrower default—whether due to mismanagement, market downturns, or unforeseen circumstances, lenders can end up in long, costly recovery processes.

Direct mail to this address for 8 months.

There are probably a lot of hidden issues wiht the house.

Those stilled cashflowed mostly due to insanely low interest rates.3) Investors started chasing Class C rentals in 2022 when Class B rental prices AND higher mortgage rates didn't allow cashflow at purchase.4) Investors are now chasing Section 8 tenants as the cure-all for Class C tenant performance issues, so their Class C properties ACTUALLY cashflow.

It is what is left after snow removal, cutting the grass, utilities, tenant issues, parking lot issues, property taxes, mortgage payment, etc. that make a difference.