Here is a PSA put out by the State of CO RE Board:Consumer Advisory: Long-term Home Ownership Concerns (Wholesaling/Assigning Transactions and Distressed Rescue Transactions).Colorado Department of Regulatory Agencies sent this bulletin at 12/19/2018 02:04 PM MST Having trouble viewing this email?

For ARV of a property: once again your Realtor can help greatly with this - but you can get a good idea yourself by:Go recently sold on Realtor.comSold within 3-6 monthsPut in Sq ft parameters(+- around 300 sq ft from subject property)Filter by similiar bed/bathFilter by acreage if necessary Start by going out .25 mile radius, increase as necessary up to 1 mile unless you are in very rural areaCheck the pictures of recently sold to compare conditions of properties (distressed vs rehabbed/updated)Try to find at least 3 good comparables and take a good average of them accordingly.  

As best I can tell, it's about 65% rentals on the street and there is some pride of ownership in the owner occupied homes, but there are a couple of badly distressed properties as well. 

He then follows up with the 5.73% cap rate assuming you do not gain occupancy and probably don't increase rents.  5.73% sounds like a high cap rate for a property that must be so distressed that it can receive a yield of 17.5% upon completion of a reposition. 

Awesome area for occupancy, hard area for finding a distressed property.

Unless it is a heavy value-add deal, distressed deal, or new development, you likely won't receive 100% of your capital back at a year 2 refinance.

For example you may choose to invest in a distressed C class property where you can rehab and close within 60 days where inventory is low versus investing in a B class property that may sit for 90, 120 days where inventory is high or vice versa..

Following what i've learned from a training program I'm taking, I've reached out to Craigslist to get some leads on distressed properties.  

I run two private equity funds which invest in distressed mortgage debt and our subscribers essentially spread the risk across multiple assets for a reasonable preferred return. 

Also she just reported a crack in the wall as distressing her too.