Many are able to generate attractive cash flows in the 10% range and deliver 20% IRR over say a 3-5 year hold period.  

Areas prone to drought and wildfire probably have increased dwelling premiums also.That being said, if this is normal in those areas, the rent should probably cover those expenses without too much trouble.  

Less headache and liability.HOA fees tend to keep increasing over the years so need to consider that.

Both markets seem attractive.

I do not think the property numbers are attractive enough.  

Unlike most organizations, I believe in keeping the historic look of the neighborhood, and revitalizing the homes, while allowing them to keep their rustic charm.According to the article the amount of sold listings has more than doubled since 2015 and home prices have increased from $113,000 to $143,000 in the last six monthsAlthough the neighborhood may not be quick returns, there is definitely long term potential in the Barrio Hollywood Neighborhood and we look forward to further investments in this community.  

If you increased the down payment, would the seller be ok with it as previously agreed?

They'll offer all sorts of "fixes" to increase your property value, but likely don't have the expertise to do them. 

In general, it is harder to secure props that flow in these areas because they tend to be better taken care of, leaving less room for a well-done cost-effective rehab to increase value while keeping the all-in price below market.

Seems like a very intriguing way of managing property and benefitting from increase NOI and ultimately property value.I am looking at a 3 family property that needs a ton of work (perhaps $75-100K, although I haven't done a deep dive on pricing yet).