I thought there was a chance that one could use real estate to directly lower their main source of taxable income (such as a w2).

. -- Thus, you can expect to get Class C or D tenants, which have a 15-25% probability of defaulting on their lease payments.2) If your PMC is lowering FICO to 550, what are they doing to improve their screening in other areas?

This could lower your resale value. 

Obviously you want to lower expenses while maximizing revenue. 

Crime in Little Rock is significantly lower than most cities it's the way the city is zoned it looks high based on the old city limits and population.

Further, running a very quick and simple valuation based on $900 rents, 8% vacancy, 25% op exp margin, and a 9% cap rate, I'm coming up with an ARV of around $83k, so I'd pass if I were you unless you can get a much lower purchase price.

I invest primarily in a lower cost area but also own property in, and am looking in, a higher cost area.

I get a new tenant at a LOWER rent, ALWAYS late, and then ... the septic tank GOES TO HELL

They do not appreciate like actual real estate and your caliber of tenant can be lower which can bring with it its own problems. 

The risk is far lower, with a better ROI.OR you can consider learning about government contracts and performing lease matching.