Anyways just my 2 cents, I’m certainly not an expert by any means, would be interested to hear what others have to say…BTW there is a great article somewhere on BP by Ben L that talks about this subject (how cheap properties get killed by capex), it's a good read.

Hey Guys,I'm relatively new here but have been listening to a lot of the podcasts, as well as reading the articles/forums. 

Check out Philly.com for the full article  http://www.philly.com/philly/business/real_estate/residential/20170122_For_profitable_flipping__few_places_are_hotter_than_Philly_area.html

I don't like the concept of having numerous properties making $200 cash flow on each with the risk.

You probably don't want an applicant that has their credit report showing numerous changes in phone service, because they get the phone disconnected and then you will be unable to contact them.That's just some stuff that you can do with a credit report.

I have been interested in real estate investing for a number of years and starting to look seriously for some properties around the Houston market.  I'm a millennial and live close to downtown so fit in to this demogr...

@Kim Younkin  clients of mine have been doing what the article talks about far before Hedge funds became a thing... default rate on those is about 90%...

https://www.biggerpockets.com/renewsblog/2015/03/0...You are not buying a 30k pig but the article explains CapEx well and tells you why it matters.

There's numerous industrial and chemial plants several miles away and a lot of workers are from out of state getting paid great money and are willing to pay a bit more or split to have a nicer place than some of the basic trailers they usually set them up in.

In the mean time I'm doing my due dillegence , reading articles on here listening to podcast daily three or four times a day.