I think the other factor is relative cheap entry level for home owners or investors.

I watch a lot of flip shows and it seems that they are quoted a lot lower. 

So you could only receive $50k in your first 6 months ofownership since the LOWER amount is your purchase price.

There are definitely some decent spots and good people there, but the quality of tenants is lower and you should not bank on appreciation.

Thanks Jerryll Noorden So essentially you’re getting money back from the contractor for work he didn’t perform, so your rehab costs will be lower than the $120k and actually closer to $95k once you get that money back?

So when I need a new admin for the advertising business I own, I place an ad for a $10/hour entry level position and I get 100 resumes from kids who just graduated with a degree in speech communications, or marketing & PR, or some other BS degree (says the guy with a philosophy degree), and they're $100K in debt and no idea how they'll ever get out of it. 

What is higher or lower on yours? 

Typically the higher the % the lower chance property has for appreciation.

However, if it is lower than 5% you should pay the minimum and use the money to invest.

Very little manual entry which is great.