In addition tenant flips take work and have costs.  

I have talked to my lawyer and it is going to cost $902 to evict them.

Before being approached to help with the development costs, I had considered on buying after the development was complete; 4 lots then having 4 homes built, selling 2 and keeping the other two to rent out.

I'm wondering if the insurance costs are hiking up the expenses.

Realistically, if rents can't keep up with costs over the longer term, fewer people will buy rentals and there will be fewer options for those who can't afford to or choose not to own a home.

Would talk to contractors and get a sense of renovation costs and ARVs. 

This sure keeps turn over costs low and at bay.

@Lily Rodriguez your profile says you're a real estate broker, if that's the case I'm shocked that you post on Zillow and not on the MLS for 2 reasons, one according to the association  rules you're required to list all your properties on the MLS (assuming you joined a association) second Zillow is not our friend, Zillow competes with us and tries to push clients to their Premier agents costing the listing agent half a month rent.Quote from @Lily Rodriguez: Marcus,If you want more exposure you can list it on the MLS, and you will have to pay a fee to the agent that brings you the tenant then you will have to do a credit check and background check yourself for each applicant however for my clients I prefer to list it on Zillow rentals only, because I can manage the applications directly from there and the prospective tenant only pays $35 application fee once and can apply for different properties with the same application fee.

I've seen a lot of conflicting advice that cautions to avoid areas with high crime rates due to complications and extra costs from the tenant base and property crime.I understand that both cities have shown crime rate improvements, but their overall rates are still way above average.What makes these cities attractive for investment despite this?

You can use your commission to lower your closing costs or buy down your rate.