While I agree that there seem to be some newer investors who don't understand cash flow (or maybe they are just speculating), it seems that if your scenario comes to pass, it would just create more opportunity for those who are able to buy properties at a discount from these burned out landlords

You are going off pure 100% speculation with a HOPE that East Cleveland bounces back if it ever does.

Now is not the time to speculate.

My father in law and husband bought it as an "investment" 20 years ago speculating that once Sullivan County gets a casino permit business would be booming.. here we go the casino is finally being built but I don't see the area turning around any time soon.. 

Without more info it's difficult to speculate.

I'd also love to know more details on those numbers, but just for speculation sake, I would say:1.)

However, what we can do inside HomeVestors is give data to backup the ability to be successful over time, and what a given advertising spend should relate to leads/contracts/purchases in a given area (plus all the other benefits)  Nothing is perfect, but in any speculative industry knowledge is power, right, and certainly allows for increase in probability of success.I wont apologize for stating a fact about someone who spent 7k on advertising without receiving any leads.  

This is pretty aggressive lending, to lend more than the purchase price is borderline speculation on the part of our investors.

Should I state that repairs are speculative and that I have not yet gained any rehab experience?

However how much better is open to speculation.