That depends on when they release the foreclosures out into the market, because there is a large pent up shadow inventory being built up every month that the banks don't foreclose, which is restricting the inventories.

Regulations, rental restrictions, and similar indirect costs are a financial burden.

Michael ir right, and with today's interest rates and lender restrictions, it could be as low as $1.5-$2M -- still a lot better than leaving $$ in bank, so don't let this stop you.

First, townhomes tend to come with HOAs that can eat through your cashflow and can sometimes have really restrictive rules for real estate investors.

@Matt DevincenzoFrom what I have seen, the moderate income levels for the restricted units are quite high, especially when you are looking at studios / 1 bdrs in the markets west of the 5.

Moreover, HOAs or landlords are often more open to this type of rental agreement, so restrictions may not be an issue.

If luck is another way to say statistical randomness in a given endeavor, then you simply need to play long enough to have the odds in your favor.

Many cities across the country are fighting short term rentals and are either trying to outright ban them, or put serious restrictions on them.

The more experienced notaries there are used to driving distances to handle odd situations.It might be a good idea to have the title/escrow company draw up a single use Power of Attorney for this transaction.  

On the other hand, if you can avoid these potential pitfalls, there are opportunities out there.I recently purchased an intended buy and hold (90% of what we do) and ended up flipping it (this particular house was about an hour north of Concord in the Claremont / Springfield VT area):Purchased for $55K needing a good amount of capital injection:We did new windows, roof, deck and vinyl rails, cedar clapboard repair and paint, some sill repair, entire new propane-fired forced hot water heating and domestic hot water system (it had electric heat and an old electric water heater), plumbing repairs, full bathroom redo (new tub/shower with custom tile enclosure, new vanity, new toilet), half bath redo (vanity and toilet), new floors throughout (tile and laminate and refinishing of hardwood in living room), all new interior doors and finish carpentry, complete interior paint job, new sinks/faucets/finish plumbing, new appliances, a good amount of electrical upgrades, all new interior and exterior lighting fixtures, driveway redo with blue stone, a drainage-related landscaping improvement, filling in of a swimming pool, and other miscellaneous odds and ends.I estimated to be all-in (purchase, reno, and carrying costs) just under $100K.