Having a vacancy costs money!

Low cost, possibly yes, but also possibly very time consuming and that has a cost.  

My only reply here is to say to simply focus on the business objectives.

Assuming you sold the home at the end of 5 yearsYour NET ROI would be:0% appreciation: 10.93%1% appreciation: 12.13%2% appreciation: 13.33%3% appreciation: 14.53%This ROI calculation takes into account taxes, insurance, selling costs, repairs (calculated at $3500) through out the lease.

Keep in mind the potential for higher renovation costs due to older properties and the local landlord-tenant laws.Good luck! 

You'll find a lot of hard working contractors.Have something to write on as many of the contractors won't have business cards.You'll still want to screen them a bit because, "there's a reason they work with the hands, not their heads":)

We have built a very similar business here in Austin.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Good cost basis on the land and a strong ground game to complete.

Again I cannot collect rent to justify this cost/effort.