There is clearly some demand out there for one!

Depends how you want to look at that info...I choose to take that to show a majority of Americans can't financially plan far enough in advance to save for a downpayment for their own house so the demand for quality rental options will continue to be there!

I would allocate a property blocked for owner used more on the percentage of blocked time and how demanding that property/owner is during that time.

If so, the demand for these is dropping faster than primary homes.I would walk through the property you are looking at and try to get a better reno cost so you can speak from facts rather than generalities to the owner and see if you can convince her to come down.Feel free to message me if you want to talk specifics and do not want the details posted . . . .

However, on the surface with only a $30K spread from acquisition and ARV, that's not much to work with if anything goes wrong with REHAB or buyer demand drops.

Is the area experiencing a lot of changing factors and also how does the supply/demand factor play into it?

Although there is massive demand for long term rentals and rental rates are increasing, it is still extremely difficult/impossible to get cash flows like you can in other areas of the country.

I am currently looking in 7 or 8 area codes where I think there may be some real value for homes in the $100-$150K range, but would like to hear from you all where the demand is.

It's really about your risk tolerance & demand for the house.Do you think that if you say no to all and she backs out that you can sell it for the agreed on price quickly?

(An REO the bank financed and demanded it).