I have two problems I’m working on to reduce that significantly, 1. developed lots at 75-100k are highly sought after, very competitive at that price point, several other players doing the same thing. 2.

@Dominic Mauro I agree with @Michael Ilhardt.

@Jason Gamio there have been properties I've bought sight unseen, however, I know the city, I have confidence in my real estate agent, I have a good property manager and if they are okay with it I'll purchase without seeing it.As others have mentioned it's not worth doing if you don't know the market, you don't have the cash or you don't have a few players in place to help in the process.

the reason was the average investor who wants a 100k rental in memphis has 20 to 30k but does not have 75k to do the buy and rehab which is risky from afar.so how the business worked and i did well over 1000 of these as a HML.. it went like this.. and so this BRRR that we did was before BP was on the internet its nothing new.You had the following players.1.

But its location location location.. walk to cool pubs shops restaurants etc.What happens in many of these lower value areas is retail leaves banking leaves resturants leave.. not sustainable so no one wants to buy a home to live in.. and it becomes all renter dominated then the values crash to ONLY what a local will pay for a given cash flow.And most locals in these areas wont look at anything that does not make the 2% rule. so as long as you have that criteria and rents that have been the same or stable for better part of 25 years..

If you want to do it right, it is a patient game, but the harder you work, the more opportunities for luck and experience will come your way.Along your way you'll find there are probably a handful of people in each trade who are dominating your immediate market, 2-3 realtors, 2-3 contractors, 2-3 investors, 2-3 attorneys, lenders etc... keep working, you'll find these people, identify everyone's needs, start solving their problems, gain experience.

She’s a big player in the local RE community. 25+ years experience.

I was also inexperienced and did not understand the process and as a process driven person could not understand why it would take a month + to board a loan.So its not only knowing what is or is not a good note, but knowing who the players are in the game you are gonna need and how that game is played. 

Given that the local municipality requires a property manager for absentee owners and the state of Washington requires a license for property managers, it's advisable to work with a reputable and licensed company like VACASA or any VC backed players Frontdesk, Soda Stays, Evolve. 

There are always two sides to every story and, as @Jay Hinrichs mentioned, you must still do your part to show the construction work was completed properly and that you are still in compliance with your loan.With the various stories, I don’t know who all the bad players are above, but this thread is 4 years old and with 7 posts, I’m sure at least the OP is long gone.