Unless you go in with cash you have a very small chance of getting a deal even for severely depressed properties.

Look at rent rates/vacancy rates for Detroit or Las Vegas during Great Depression for what can happen to cash flow projections.  

Kingsport is beautiful geographically, but seems to have a rather depressed economy (compared to Hampton Roads, Va).  

I still cant get over in like your area owning a home in your neighbors is far cheaper than rent.. but yet they rent.Or if you don't want to be beholding to the bank and those mean ole bankers don't borrow any money pay cash.Just like my grandfather living through the depression if he could not pay cash he did not buy it.. 

Desiring to move forward rather than remain in the depressing past is not a negative to many.....And I'm sure we agree on many things....! 

I was also able to link up with a pasi realtor and see about 4 properties in the Fitzgerald/Bagley (highly recommended), a duplex in the neighborhood of Russel Woods (lots of blight and not much activity) along with a couple of duplexes in the Petosky-Ostego area (lots of blight and not much activity neither, rather depressing).

Over the next year, I would experience a level of shame, depression, and lack of purpose that I had never felt before.

That front of house picture in your listing is depressing.  

And that will make for a lot of NIMBA battles in the future and perhaps, real, sustained investing in depressed urban areas.But as Drew eludes to- the institutional investor is going to be driving the bus.

It's your job as an investor to figure out he opportunity or the threat posed that is keeping that list price depressed and see if you can use that to your advantage.