I'm piloting a new construction program that's building a generational style home 6 bedroom 4 bathroom, 2500 sq ft house in a class B/C area.

Anything over that could mean that the property is overstaffed, or it could mean that management is delivering a very high level of service such as in a luxury property that has a doorman and all sorts of staff that you don't typically see in garden style apartments.

My thought: 70k won’t change my life.

Keep in mind that many of these cheap homes are selling for less than a third of their insurance replacement value, which really means that the land has negative value - let that sink in.Most buyers who can actually qualify for a mortgage will get a PA for $200-300k and desperately want to upgrade their life.

I’ve lived in Memphis my whole life, and I’ve been helping investors for decades, so I can tell you that this market is one of the best for out-of-state investors.

Companies like PolicyGenius do an excellent job selling personal lines coverage (property/casualty and life, mainly) more easily (and maybe more cheaply) than your local State Farm agent.

Josh Holley should probably rethink his life. 

However as you correctly point out this is far more risky and or its risk capital compared to buying a income property.. but the reward can be strati-spherically higher .. not just a little bit but it can be life changing profits on some of these deals.

It makes a huge difference if you can solve that problem for them.If you get the sense that there's someone who will NOT leave and make life hell, then it may be worth getting out of the deal (I don't know the specifics).Good luck!

Well when life puts lemons in your mailbox, make lemonade with them.