Covid, the lack of housing inventory and probably the increase in the number of in town properties used for short term rentals have really put a squeeze on long term rentals and driven rent prices up significantly which is offsetting the higher price of properties here and helping investors stay profitable. 

One is the cost of materials that you mentioned.  

I mean, I agree with the gain if demand materializes, but buying in a rural area is pure speculation.

@Kyle OwenIn a seller's market, getting a seller to accept a rehab loan offer can be difficult combined with the fact that construction labor/materials has increased, but it doesn't make your idea impossible ... just more difficult. 

RE professionals can group their properties and make all those "active" if they meet the material participation rules and keep excellent records.

It is a Cost Plus, it says throughout the build 5% increase in material price would initiate a price increase to me for the build.

Material costs are similar across the world (the labor costs fluctuate dramatically) so knowing what a rehab will cost within 20% is realistic.  2.  

I've only just driven through!  

I had a bunch of construction material/debris from my last flip (some usable items like a box of partially broken tile, old sink, old toilet, but also a bunch of trash) and posted pictures of it on craigslist and offered to pay the lowest bidder to haul it off.  

We have driven for dollars.