If it is on the west side and too hot?

For move ins, I will not hold the place very long, but we have a very hot market.  

But no central air means I need some sort of AC in the house during the summer (Im in Virginia so it does get hot).

If the market is hot in 6 months I will make more.Having said this, I know investors who look for hot markets and pay no attention to cash flow other than not wanting negative cash flow.I prefer my way.Hope that helps.Bill

I also am certain I won't be buying a home for 1.25% of market value, but I think that tax delinquent owners will be motivated enough to sell for a good percentage off of market value, enough to get investors jumping on an assignment of contract in such a hot market such as West Oakland. 

Finally, if you are willing to come to the Hot Springs area join one of our Real Estate Investor MeetUps.

Welcome to BP...I spent a summer in India back in the day...very hot :) I'll be at the meeting tmrw as well..hope to see you there!

@Joshua Dorkin, DC would be a great location due to it being such a "hot" market and all... ;-)Just a suggestion...

That too is a hot area, at least that has been my experience.    

An entry level 5 year old 1200 sq ft 3/2 in a mostly renters weak school district neighborhood might have a market value of 75k and a replacement cost 100k that same house in a hot neighborhood with good schools might have an ARV of 135k.