They try to get market value, and frequently the property has serious issues so it sits there and no one buys it.

I have a realtor friend who goes to Costa Rica frequently, and told me while a beachfront home can be 2.5M, a half back on the cliffs one can get a property for under 100k.  

The average net worth in my town $2mil, so I come in contact with successful real estate investors quite frequently.

Just a happen to frequent those blogs, and recently just joined BP.

I frequent Sawtelle and SFV as my home. 

@Nancy Roth   properties in AU cost generally 500k and up and are negative geared most of the time.Negative gear is the AU term for negative cash flow.There was a gentlemen on this site and the one I frequented in AU  that sold turn key in Japan...

Getting sample management contracts, lease contracts, maintenance requests, maintenance invoices, tenant applications, and other communiques that companies use from a variety of local PMCs then going through them will help you figure out what matters to you.  

HVAC or other exterior equip typically may not last as long, hurricane damage, more frequent deck repairs or annual sealing, etc.), so just higher maintenance costs to account for in the analysis to play it safe etc.

This frequently causes bad advice even though well intentioned.Asset protection is critical.  

I'm going to get a bit technical and local here.The absolute worst elderly property of the 1900-built variety is an old rambling place of 4-5 bedrooms that was originally built as a box-like 3-bedroom single-family according to a pattern that was originally called a Foursquare, and then at some point was converted into a duplex or triplex, sometimes with an addition, sometimes without, almost always with an attic in the original Foursquare part that's been turned into two additional bedrooms, sometimes with a small third-story half-bath shoehorned in, sometimes without.This happens to a lot of older houses in the Pittsburgh area.