Manteca, Fresno and Turlock were mentioned to me. 

As @Peter Tverdov mentioned, you'll usually see that tenants don't replace these things.

@Bill Brandt funny you should mention Guam and the USVI :).

As @Lucas Martinez mentioned, FMV rents in Santa Barbara have exploded, I'm trying to be considerate of my tenants while also exploring a path to adding value to the investment--which I know probably falls into the oxymoron category.

Nearly everything you mentioned here clearly and emphatically says you have tons of homework to do.

as @Noel Challenger mentioned ?

He's selling the house because he needs the capital to do a new build.I forgot to mention its a 3 bdr/1 bath.

With the budget mentioned, you can find single family rentals in Columbus and duplexes in Cleveland under 200k.

I am not familiar with Horn Lake and the economic conditions you mentioned as a CON, but if you already have those concerns, on top of a large rehab, which typically don't shrink as you get started, and being OOS and needing a PM team, you may want to consider other options as you get started. 

Now that you mention that I do recall him saying this.