The overhead in the south I think is generally lower. 

My wife and I are tossing around the idea of building a new duplex so we can substantially lower our housing costs.

Also, if my credit score is lower than the other member/partner that other member must be president.

That situation likely won't work out - I guess I was just curious if anyone had made a deal with a seller for a lower purchase price (subsequent lower DP) with the incentive of a profit/equity share.

On further searches on BP, I see that a lot of folks have had this same exact scam pulled on them - Craigslist ads with lower prices and one to many people that get the place rented to.I am very curious to hear from anyone who has had to deal with landlord tenant law issues that have arisen from this - i.e. disgruntled scammed wannabe tenants who decide to either break in and claim the place, or pursue action through the courts.As someone going through this right now for the first time, any words of wisdom would be appreciated. 

This lowers your effective interest rate.

You can find the deals with the specs you have put forth, especially with SFH, that tend move more slowly than lower price points.   

New drop ceiling in lower level.

For the last four years we had a stable economy, unemplyment keeps getting lower, continued low interest rates (anything below 8% is low) and a social trend towards renting (although millenials have started buying as of late).

I much prefer a lower cap rate in California knowing there is a high likelihood of long term rent growth and capital appreciation vs. concerning myself with a higher initial cap rate in the midwest but on an asset where rent grow is small and an asset that is deteriorating.