Here's another article about the January 2016 sales in Memphis.For what it's worth, I just spent the day (Wed 2/10/16) driving around town looking at Class A and B properties with a CA hedge fund and was shocked by the lack of available inventory for sale.

The price appreciation charts for the two areas are almost even more shockingly similar..

this was a probate sale. it came on the market for 39.9k. not sure how long it was on the MLS for, but i offered 40k. was shocked to hear that they took my offer.just closed on it a few hrs ago. i got $500 back because they didn't clean it at all.budget - guessing around 17-20k, but we will spend whatever it takes to make it the nicest house on the block.

Sounds like you are taking all of the correct preliminary steps to get started. 

And 2 days later they text and said while they was cleaning the kitchen counter and turned the garbage disposal switched on she got shock.  

HOA fees can be shockingly high in that neighborhood.

Its shocking that someone from my area is on the site.

I've paid an FHA appraiser to do a 20 minute preliminary, non official, inspection to catch things I may not, prior to the FHA appraisal.

I can throw a baseball into the yard of a house on the corner that sold for over 500k (bigger and nice).The property:SFR 1200 sf 3/1 with a weird layout (will be rectified in rehab)preliminary scope looks like 50k-65ksits on a landlocked parcel with a right of way and shared driveway across neighboring driveway.  

I would be SHOCKED if they actually loaned you money on a second position for private money rates.