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. 

I think their general stance is going to be to go with whichever comparable property has the greatest degree of similarity in terms of (probably, in this order): location, age built, quality of construction/current condition, and square footage.

Not understanding/not realizing a condition exists is unlikely to work as a defense.

Rarely are they in decent condition.

I am finding some that are below 200k that are not that bad in condition.

Who knew about the condition of the wiring inside those old walls?

Competition is much lower this time of the year and the election has further slowed down the market, which creates opportunities for savvy buyers.

Educating investors about market conditions is essential.

I'm not in that market but I would recommend finding off-market deals, targeting distressed properties, or focusing on smaller multifamily units in less competitive neighborhoods.

I like how I can dig into the competition and see their nightly rate, pet policy, etc.