That $1400 rent actually makes sense given the low purchase prices.

I am just worried this might be a mistake as it as a high cash flowing property and my mortgage rate is a low 3.125%.

One of my rental properties is located in a low-income area, which presents unique challenges in finding suitable tenants.

Plus for its high cash flow potential, utilizing a 1031 exchange to reinvest gains effectively made this experiment a relatively low risk for me.

He does 65% leverage maybe 70% but doesn't matter how low purchase price is. 

If the house is listed as-is, there won’t be much room for negotiation (ie. seller concessions/credits), but you can offer a price that factors in the rehab components.

Credit 700+, bank statements available, good liquidity position (almost enough in cash to purchase the property - but obviously know that's idiotic).  

I have no doubt he'll transform this entire corridor in the coming decade so I'm also looking closely at Hornsby Bend, Del Valle, and anywhere in the general vicinity.These are my top two areas where you can find low entry price points relative to both current and anticipated market fundamentals.  

Cash flowing well on every SFH and small multi family deal I've done in Upstate NY, even with my first having an interest rate above 10% due to what my credit was.

Depending on the lender and program your biggest hurdles might be credit score and income and time in job.