As with any For Sale By Owner (FSBO), some are good deals (meaning they easily exceed the 1% rule) and bear out a good ROI after more rigorous analysis.  

(see my blog and follow me for more posts)Many top investors are positioning themselves for an upcoming correction in the market. Here are some rules to follow to mitigate risk if buying at this point in the cycle:Buy...

Find a good local mortgage banker/broker who can help you navigate those waters. 

With your friend on the ground there, that can be a big help in navigating.

Sometimes your risk reward changes substantially with the types of projects you can get into for one vs the other.As some other posters have alluded to, time constraints drive a lot - a light rehab/cosmetic buy and hold is possible for navigating while having a 'regular' job - and certainly managing rentals while working is possible as well.The last one, and I'm surprised no one has mentioned this - is market specific. 

These look very helpful in navigating my BiggerPockets beginning!

I have my girlfriend's brother, who is property manager, to help me navigate the rules in our state. 

It is a daily challenge to navigate the local, county, state and federal governments; local Code Enforcement, Housing Authorities, Department of Real Estate, Franchise Tax Board, Secretary of State, IRS, Dept. of Fair Housing & Employment, HUD...to name a few. 

Maybe I can help, if you are still trying to navigate this situation.

The rules are pretty rigorous and more than just buying something in the right ZIPcode.