Prices per night starting in the $600 range - "Cheaper than the Maldives, and no jet lag!"

I tried to explain to my friend that people wanting a smaller apartment would go with a cheaper option and those with access to higher amounts of funds want the larger apartments.

Or move to a cheaper area like I did

They pul from the same source and are a bit cheaper.

Cheaper is not necessarily better here.  

However when I researched about the neighborhoods, each one of those happened to be lower income neighborhoods with not so great schools and that was the reason ( in my mind at least) for the price to be little cheaper and numbers being attractive (12-15%) I am little concerned about investing in such properties simply from vacancy perspective.

everyone keeps quoting 1.70 ish but you also have to add .50-70 cents for the under padding so the cost comes out to more. and thats where my question comes in is laminate really cheaper than tile?

The all in costs pert sq ft are much cheaper and you have some income coming in while turning around.

I'm not sure what is required, but normally I'd say $5K is enough to deal with things that come up, especially if you are willing to be scrappy, do some work yourself, and/or have time to shop for cheaper options.  

You dont want to buy that product at JC Penny if you can find the same thing but cheaper at Wal Mart.