Last time I was there, I met several Class A & Class B 100+ unit managers and they were very positive on the market but their one concern was market saturation. 

@Ryan Goggins,You are right we dont have enough information to know if this will have a negative or positive effect in the traditional market or not.

Three years appreciation and minor repair and paydown were flipped into a regular 30 year mortgage.It would never of happened if he didn’t know me and trust me to maintain and improve the property and if he wasn’t in a position that he was satisfied with straight interest and saving transaction costs.I think the NNN scenario has potential for a tired old landlord that wants to retire and still have cash flow, but only to an experienced buyer, not a nubie.

@Lisa Li You are starting the game in a wonderful position.

Overall, scaling up and not buying SFH is a better strategy for someone in your position. 

If you think that you'll have immediate positive cash flow, I'd go for it. 

You can buy notes already performing, you can make up your own note, the note can be in senior or junior position, the note can be short term or long term, amortizing or interest only with a balloon payment, etc.  

@Kevin Means What you described was the same position I was in 2 1/2 years ago. 

Have you done a math analysis that shows the bottom line positive or negative if you had to make the rehab done. 

This should be heavily affected by what your goals with real estate investing are, what types of strategies you are hoping to deploy to reach those goals, what assets you are looking at, and from what position you are starting your real estate investing path!