Always keep in mind that cheap properties are cheap because they are less desirable and will typically attract less desirable tenants with more maintenance and vacancy.

The property management company finds/vets the tenants and provides maintenance services.  

Depending on how low the score and what you intend to do with the equity, it might be worth considering an FHA cash out refi to pay down debt at closing, solving the DTI issue in the process.

Just make sure you run your numbers carefully, factor in maintenance and vacancy, and move forward once the deal makes sense. 

Your approach here has definitely given me a lot to think about in terms of spotting hidden value.Curious, with the deferred maintenance challenges you faced, was there anything unexpected that came up during the rehab that you’d approach differently next time?

Overall, you don't see that many "for rent" signs which suggest it's fairly low vacancy.

Is your vacancy rate low?

Here are a lot of numbers :)Price 175kgross rent - $1,700. 850 for ea. unitproperty tax- $2576 annuallyinsurance- $1200 annuallylease for both tenants are in place until late 2026potentially, no repairs needed.tenants pay all utilitiesvacancy rate - 1%management fee- $170 monthlytotal monthly expenses $1391 (Mortgage-900, taxes-214, insurance-100, variable expenses-178) total monthly income $1700  If you are allocating for sustained expenses, you should allocate for maintenance and cap ex even if it is a new build.  

Some of my best deals have come from properties with title issues, deferred maintenance, tenants in place, or other challenges that make them less attractive to retail buyers.

Here's a quick list we use when advising clients:Avoid septic if possible (higher long-term maintenance)No power lines or flood zones (hurts resale/rentability)Good school district and low-crime zip codeNo HOA or landlord-unfriendly restrictionsBuilt after 1980 to minimize major capital items (plumbing, electrical, HVAC)Single-story brick homes rent well and cost less to maintainFor a deep dive, check out the BiggerPockets books “The Book on Rental Property Investing” and “Buy, Rehab, Rent, Refinance, Repeat (BRRRR)”.