But as far as your buy & hold strategy, I'd target out of state owners who either have delinquent taxes, run down properties or are evicting tenants (hover around housing court to find them).That said, there are 1% and even the occasional 2% properties in the towns I've mentioned, so those really are worth a look.

To them, it is exactly the same business model and is taxed exactly the same way.There is some controversy out there as to occasionally flipping and whether it rises to a business. 

They are generally pretty reliable, and the occasional repair bill to fix them, should not be a regular thing.   

Occasionally an exception is made.1.

Neighborhoods may occasionally draw a higher caliber renter, but there is usually something specific to that neighborhood (low maintenance living, community amenities, secured community, etc.) and it should show up in the rent ranges.

It's still possible to find the occasionally cash-flowing tenanted property but the best deals are often vacant fixers.  

Like I said, a lot of it is junk in terrible neighborhoods, but occasionally there is a good house in a good area.  

I'm not necessarily a lover of the BHAG, but I occasionally give myself one when I have the mental energy to pursue it seriously. 

@Jeff S.You must be reading through some blurred lines.

Naturally we are not enthusiastic to paint units in one-off colour schemes.Usually once or twice a year we get a tenant who asks to paint a room (usually a bedroom) or, occasionally, most of the unit, colours of their choosing.