Maybe then I can find some gems in these areas, but in the meantime I have a feeling (and hopefully it's not just an illusion) that other markets will offer better cashflow. 

@Damon Decker The problem with rules like 1% rule are that they create the illusion of deal or no deal just from one rule, and those rules really only apply to markets in the Midwest and South where you can buy houses for 100k and rent out for 1,000, but the appreciation won't be nearly as high as a place like Denver long-term most likely, and also, you are dealing with property management 2000 miles a way. 

I have a really cool idea with preforeclosures, but im keeping it quiet. at least for now.Firstly because ive never heard it before and Dont want to put bad (possibly illegal) information out there. and secondly cause if its amazing, Ill use it to get started in REI.

I know for sure the property management team ill use in Memphis is top notch from reviews, youtube, an speaking with the owner.

They suck you in and then leave you dry.If you want to know what investing with a turnkey company is like please do the following:   If you have never played poker before and have no experience in it... go read a couple books on poker,  which should give you enough of the false illusion that you know what you are doing.  

I also don't think it's rude to be a little illusive in your answer.

However, I have NO illusions about running this like a business.

For simplification, Ill use round numbers.

I did this because I knew that the Seller would be illusive and I didn't really have a case to ask him to repair it. 

If it is an optical illusion and there is little to no settling occurring, the repairs can cost a little as a few hundred dollars to point up the masonry.