The program had a very small sample size as there weren't many participants + as you mentioned, renovation/conversion costs were extremely high for landlords.For your question, an architect would be a great contact.

Its much better for them to sell a high dollar house to a retail buyer.

However I did some research myself on crime rates, and from 3 different sites, they all suggest that crime is rather high in that area:https://www.neighborhoodscout.com/tn/memphis/crimehttps://crimegrade.org/safest-places-in-memphis-tn/https://www.memphisdailynews.com/CrimeReport.aspxChecking city-data.com, the average salary for that median household income is around 39k.Also, the property value is listed at 145k, which seems like it is on the lower end.

I see with this with a lot of local banks or credit unions.The Banker should have walked you through the basics on County loan limts versus Jumbo &  High balance.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Many years later we scaled up to a high point of 50 deals in a single month.

Quote from @Daniel Rabinov: Hello,So I am ready to get going on flipping or BRRRR.The thing is, my local market (Los Angeles) is not a great place to start as entry points are really high for beginners and it's very hard to get good deals here.

The basement itself is an unfinished basement, as well as unlivable (5ft high floor to ceiling).

I see this trend increasing given SFH in immediate Bay Area won't be built or will be high priced.

  - For purposes of trading equal or up in value (which is necessary in a 1031 to defer all taxes), the value of the property you build is purchase price at time of acquisition + cost of improvements completed before the exchange completes.