There are clearly some positives and negatives to each, and depending on the area you invest in one may be a better option than another.

Remember your cost basis after remodel will be 15k more. 180k house renting 1300 is probably negative cash flow. 

Could cause some negative guest interactions.

November 2022 Housing Market Update for Austin, TX MSANovember 2022 statistics have been released for the Central Texas Housing market.

It's showing negative cash flow now and the hope would be to get the rents to where we can break even at the least.https://www.biggerpockets.com/...Ive also been looking into the Florida market condos (Naples and Miami) as another avenue....is that a better route to go?

Sorry and I’m not trying to be negative on the property but I think there are better properties and areas in the $800-900K range.

I bet there was little to no negative impact on rentals in that area.Curious to see what other people with properties in that area have to say.

How could this negatively affect the homeowner/seller?

If this is a well ran asset with very little negative feedback over a sustained period, I'd say message them privately and give them a chance to rectify it.

Just remember: most negative reviews are written by problematic tenants.