Sometimes rehabs are priced high as an estimate and then a contractor would bring it down to a lower number that wouldn’t scare you.

The best way to get cash flowing properties in these areas are finding a place that needs serious work, investing that rehab to increase the value, re appraising after the rehab and then pulling out as much cash as you can on the refinance (thus lowering the cash youve put in out of pocket and hopefully giving a good return on your cash)Hope this helps!

Unless you market is hot, you run the risk of attracting lower quality tenants.

Also, my understanding as per my attorney, even if you buying at an HOA foreclosure auction where they set the minimum bid lower than the judgment, the buyer is still responsible for the difference....HOA debts stay with property regardless. 

Well obviously my market is much different than you, mine being much lower priced than Cali..if we were to build for you here it would be $375-400k for the building.

The housing affordability crisis means that lower paying jobs are having a hard time keeping employees.

The properties on the west side of mopac near far west tend to be priced in the $400k-700k and there are pockets on the east side of mopac that tend to be lower priced in the 300's.

The more motivated the seller is tends to take a lower price. 

Rehab budgets are non-negotiable and should not be lowered lackadaisically.

I have learned that I have to offer strageticaly lower prices than the offered price.