I can't figure out what the economic forces are in the community driving the high rents and relatively low purchase prices.

They don’t want to drive more than an hour each way every day.

I would recommend doing a "reduced" (~60%-70%) leverage refinance which would help drive your rate down as much as possible and hopefully still maintain the cash flow that you would like to have, especially since they are free and clear.If you were to go the portfolio route, I would confirm with the lender you use what their 'occupancy requirement' is.

As long as you have the knowledge, drive, and a great/qualified team to work with, you can find success in most places.

If so, and it drives the bids up in price I'll be sure to send him a thank you note!!

Being a former college athlete has always made me dedicated to what drives me each and everyday.

As the options come in you or someone needs to analyze their potential, do a drive by, get in to see it, and then someone would need to estimate the rehab - a quick way to do this yourself is ask three different GCs what their price per square foot is on a full gut and average them out and use that price per square foot for your rehab estimates.But let's say you get a funnel started and even analyzers to pick out the gems among the muck, now you need your contractor to come in and give you his estimate and then you need your financing lined up and get your term sheet based on your offer, the rehab, and what you think the ARV will be. 

Everything's been pushed thru a bit hush hush without much debate.

-Would you then "offer" or bring up the potential ACTUAL cost as a counter offer? 

I wouldn't buy a property based on numbers from a turnkey company, agent or wholesaler, but fly or drive out and look at the property and neighborhoods.