Or, they have a very low or negative net worth and aren’t concerned with the risk of being sued.

If it's the latter, the online auction sites start the bids low as a teaser in order to get competition and more bids.  

Overall, assuming there is enough demand to meet these numbers and we can buy at these still very depressed prices, it seems like it would be a low floor and low maintenance investment, generate moderate returns for the next 5-10 years, and have very high potential ceiling in the event the area experiences a comeback which many special interests are already working towards.

I've also heard BP podcasts where people bought extremely low priced properties with all cash (under $50,000).

Rents seem low compared to purchase costs. 

@Elliot Saks - Milwaukee has great cashflowing properties as  there are a disproportional amount of renters (roughly 40% of households) and a solid inventory of low-priced housing. 

I now tie my identity to daily activities (learning and improvement) and the results are taking care of themselves.I am understanding and gaining control over my mind (your #1 above).I hit the gym first thing in the morning and eat a can of tuna and low sugar protein shake for breakfast...a workout and 45 grams of protein is a good way to kick off the day. 

@Bernie Huckestein,You absolutely can not get a mortgage in your name if your IRA is part owner of the property.

While speaking with a lender, she brought up that I should invest in my homestead before buying my first rental property so I can take advantage of interest rates while they are low.

Without a job your chances of success is likely very low.