VA can take longer with appraisals and be more restrictive with conditions of the house vs cash or conventional.   

They had the move in report from the beginning, so it was not like they were unaware of the move in condition. 

If you can get close to that with a good PM then it’s a winner.Keep in mind that same $170k could probably get you a 4/4 or greater if you wanted to do a 15% investment loan that should gross well over $100k (if market conditions stay the same).

This said, like Scott, these can be an opportunity IF the relevant conditions are met. 

I know the Destin/PCB coastline is a hot market but I feel it might be cooler weather-wise over Christmas?

Find out what kind of properties they are looking for (what areas, condition, price point, etc).

Here's my take on Cleveland so far: Pro's:- Cashflowing Mutli family houses can be had for well under $100k, in "turnkey" condition (or close to it)            - Turnkey is important since we are OOS investors and it's our first time purchasing, so we aren't looking for a BRRRR just yet,                 but that will come later once we feel more confident.- Many properties already have long term tenants placed in them- Prop.

Found Mls portal Had long term tenants that paying below market rents With a a unit in subpair condition How did you finance this deal?

Although it was not dramatic an inverted yield curve usually forecasts economic conditions that make a recession more likely, or low economic activity. 

The process is the same, but you will probably lose some deals that can't be financed due to condition of the home or motivated sellers may only want a cash offer.