The common areas were a mess, one unit was vacant, and the exterior wasn't maintained (over grown bushes, tall grass, weeds 4' tall, trash in the yard), and some damaged siding.

But now that we've closed on the property, we'd like to shop around for a conventional loan, so we can lock in a low(ish) interest rate before the fed increases.

The biggest issue I've found when using deal machine is that since it's a available to everyone, once you reach an owner they are fed up by all the marketing they have received and are ready to lay it on thick on all future callers.Anyone can drive by a neighborhood and think they spot a "diamond in the rough" when they see overgrown weeds, an abandoned vehicle, or other deteriorating conditions. 

I went to township a few days before closing just on a hunch(sometimes I will go after settlement) as soon as I mention the address to the township- the red flAgs go off- they were in the process liening the property for 8 grass cuts @$7200.00 total- 1/4 acre property- yea I know I'm in the wrong business.

If you run the business properly as a separate business and maintain it according to state/fed regulations and the OPAG, you will limit exposure.

Typically speaking, Flip candidates will be in the burbs 10-20 min away from the downtown city center point.This would include (in order of highest avg price and appreciation (which is around 9-12%); Johnson County KS (Overland Park, Leawood, Shawnee, Merriam, Prairie Village, Mission, Roeland Park,etc) Parkville, Lee's Summits, Blue Springs, Liberty, Northland (Staley and Oak Park HS district in Particular)That being said, there are many prolific flippers with strong relationships with wholesalers who swoop up anything worth a damn pretty quick.All of these 'A' markets are often 'fed' by tertiary markets further out in the metro (30-45 min from the city center point) and other desirable markets further out from the metro (OP fed by Spring Hill and Olathe, Liberty fed by Excelsior Springs, Orrick, Richmond, etc, P and then standalone markets of Excelsior Springs, Platte City, Kearney, SMithville, Weston, etc...I am less familiar with standalone cities in the south, but these would include Raymore, Louisburg, Peculiar.For flips though, its all about purchase price, and most of the wholesale (and a few on MLS) deals that I see that would be good flip candidates due to entry price mostly exist in Independence, Raytown, Gladstone, Grandview.Areas to avoid are in the city center.

@Tarik TurnerThanks for the reply Tarik,I know Penn fed does helocs on investment property.

It's a duplex, asking price is $71,000, tenants pay all utilities and mow grass, gross rent is $1,300/mo.

It changes in the same direction (typically) as whatever the fed does.

With unemployment at a historical low, inflation remaining sticky and a Fed that is determined to slow down this economy I think it is a foregone conclusion that unemployment will go up substantially, meaning collecting rents can get harder.