I also ask for referrals from other tradesmen I have doing a project.  

Those tend to be the smaller type of deals of course and in more tertiary markets, but not a bad strategy.

Memphis has a pretty affordable housing market and tends to offer solid rental yields, which might align well with your goals.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

They also tend to have very high minimums, if they are even taking new investors.  

Interest RatesCurrent Seller Financing Rates: Seller financing rates tend to be higher than conventional mortgage rates due to the increased risk for the seller.

Also if you can share a referral link as they offer $500 to both the parties involved.

I would recommend getting a referral from other investors as well if you want to find a new relationship.

That's the easiest, least expensive way to get started and investing in that way in your local market will have a much greater impact on your financial future than buying a cheap house in the midwest- those "cheap" houses tend to be very expensive. 

FHA has the self sufficiency test which also makes 4 units more valuable because you have a better chance of pass the SS test with 4 units versus 3 units. 2 units doesn't require the SS test so buyers also tend to like that inventory for FHA so they can avoid the SS test.