I've read the chamber of commerce posts and found where the city is injecting money but those areas don't attract very solid renters.  

Otherwise, our discussions would sound like an echo chamber))I will just comment on some of the points you have made:- Houses that are "pending" and the realtor thinks closing is coming but it is being fished outAre these houses on MLS, made available to the public?

Alan Chambers A property manager will not solve the problem of a tough area only make a living handling those problems for you.

We do permit vaping as it doesn't damage the property.

Yes there might be more competition but make sure you can dominate the competitors and stand out.Talk to local professionals like building officials, city council members, and local Chambers of Commerce to hear what is planned for the future and any laws you need to be aware of.  

Bureau of Labor Statistics, the Census, local Chambers of Commerce, and sources like those are good places to start.

Get to the REIAs.Read about Self directed irashttp://www.amazon.com/IRA-Wealth-Revolutionary-Strategies-Investment/dp/0757000940Read about the Private Banker Concept through TrustEtc.com, my favorite custodian.https://www.dropbox.com/s/lubeo04p7o5d8rk/PrivateBank_2011_Final.pdfOnce you understand the Custodians, Prohibited Transactions, Disqualified Persons, etc, you can give speeches to Rotary, Lions, Chambers, etc. about Main Street vs Wall St.

He uses an asset management company to locate foreclosed properties, also you can go to your local chamber of commerce and ask them for a foreclosure housing list if they don't have it they can point you to who does. 

I also attend various small business networking events, startup conventions, and chamber of commerce events.

Ours is a FVIR type water heater with enclosed ignition chamber.