I used Lending Club and Prosper to finance houses that were low cost. 

The other one that fell through had a judgement filed against the homeowner right after we did the quit claim with the mortgagor and were about to close and redeem the property from the person that bought it at the sheriff sale.That judgement terminated the mortgagor's (and therefore our) ability to redeem that property.The response rate on our marketing campaigns has been extremely low; south of 1%, in fact.Our campaigns include door knocking, leaving notes on doors, as well as mailing the property and new addresses of the owners (when applicable).  

He is very low key and has little foot print n the web  what is there looks good but I am concerned at just how little there is.  

Conversely you can get a property at 60% if the price point is too low you wouldn't make enough money to make it even worth your time to do the flip, since the 40% spread represents too small of a dollar figure.

If you are holding onto a rental for 7 to 12 years, a few construction delays will barely effect your IRR annualized.2) Flips have less margin because you have to pay 10% in closing costs.3) Flips are seasonal at least in areas with four seasons.

Commingling funds and improper signing are low lying fruit.

Zillow on the other hand, seems to appraise about 10 - 15% too low. 

for the area, 170k is awfully low for 5k of work.

Often a high cash flowing portfolio doesn't appreciate well (cheap properties in low appreciation areas).

For most seasoned investors settlement issues are not something that would scare them away.