Never had an issue finding quality tenants there.

Usually when you take over a property, you have to catch up any outstanding balances from mortgages, taxes, construction, utility or any other lien.

Also the local county or city can have demanding high quality finishes that run up per sq ft costs.The site specifically can have challenges that are not typical site to site that increase costs.

@Brian Gerlach the quality and features can vary dramatically.

Everything from the quality of renovations, possible warranties, property management, ongoing service, and more. 

Was it because the quality of tenants you got from Zillow was not good?  

My advice would be to study the art of finding quality, off market deals.

Depending on location and interior/curb appeal it may also attract higher quality tenants.

Property: 4 BD / 2.5 BA 2-story HomeOnline Value: $284k (Z: $292.5k, R: $285k, Red: $275k) less repairsRental Comp Range: $1500-$2100/mo - Most likely $1650-$1750Repairs: $34kActual Value: $250kOutstanding Mortgage Balance: $110kPrevious Purchase Price: $88kRV Purchase Price: $134kHow would you structure this deal to minimize expenses, fees, & taxes given the following info:1) FIL can give transfer property to us given any of the following strategies:    *$0 (gift)   ** $110k (we assume the outstanding balance on his mortgage)   ***We transfer at market rate (quit claim deed adds us to property deed, $110k refi with wife & I assuming all debt, then he's taken off deed w/ quit claim & we pay him 140 payments at $1k month for the equity he has in property w/ no interest).   

We found this deal by looking at Zillow and only looking at properties that had been on the market for 60+ days, and it had poor quality pictures and overgrown front yard, making most people look the other way!