We capture them through the squeeze page that is built into the software by advertising on Craigslist, or sending direct mail to service type companies like lawn maintenance, pest control, mobile computer repair, etc.

Also, my understanding, from your post, is that you would be buying the property in the current AS-IS condition, but paying the ARV price; without having any control over the rehab job. 

Remember you don't have to own a property to control it.

., higher turnover, more delinquency, increased maintenance costs, etc.).That said, I know lots of investors who have prospered in Memphis in the price range you are considering, myself included.As you already know, BP is a wonderful resource to help you find deals and managers in Memphis.  

You will be required to somehow prove that your failure to do what you promised was due to something completely out of your control, such as a non-voluntary job relocation or out-of-state mother in law that came down with cancer that caused you and your spouse to move to be closer to her until she passes away.If you cannot prove that this thing was completely beyond your control, your future mortgage loan application(s) will be denied until so much time has passed that there's nothing in your paperwork making it obvious that you did this.

The costs are heavy upfront to buy in, you have no control or say, and you cannot invest in value add deals.

pest control (if applicable)?

Don't over complicate.Take purchase price, say $150,000$1,000 Down payment$9,000 Purchase Money Note (secured by Trust Deed or Mortgage) payable X for Y years$140,000 - Subject to existing 1st mortgage (approx balance, terms per lender's Note)You could offer another few lines concerning progressive release of funds on certain events like possession, etc.Also, you could offset seller's/attorney's concern about your payment of sub-2 loan by you giving performance trust deed that you will pay 1st or AITD Wrap of 1st and purchase money note to given them more control.

caveat emptor:  Many States require a PM to be managed or at least under the control of an RE Broker. 

If you have a lot of high interest rate debt, that's the first thing you want to get control of.Another thing to consider is your tax bracket.