You won't find a deal where you live for free, but if you can live in a great neighborhood at a reduced cost of living that is a nearly risk free way to get started in real estate. 

Cons - Risks as stated by others, can limit which renters are looking at your house. 

Properties in Tucson are closer to that 1% rule mark or even other smaller cities but then there is more risk. 

"Getting in" is easy; making money, managing the business, with the increased financial risk of commercial properties is a whole different game. 

If places like yours are sitting at $2200 with no traction, you’re taking on unnecessary risk, especially as a first deal.

Run your business as a business or risk it.  

Hi, pre foreclosure in all of its permutations, before the bank sends Notice of Default (NOD) or efter which is state even county dependant but often starts a 4 week clock till the trustee auction are the 2nd most difficult deal scenario and IMHO only experienced investors should bother, the 1st most difficult deal scenario are bidding at the court house steps on lord only knows what is being auctioned off sometimes even 2nd mortgages, you need to do so much home work to attempt to reduce your risk at the court house steps...Pre foreclosure no one talks about these issues, always about the nice sounding stuff like "motivated seller" get a good deal etc etc both are usually not the case.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

If you use cash flow - it's more safe imo and debt leverage is risk but reward if you execute on a value add project.

Also, explore creative financing options that might balance your partner’s limited credit/cash flow without putting all the risk on you.If you're attorney can't clearly articulate this, maybe it's time to find a new one.

If you're still interested, take a trip to the site once ground has been broken.The flashy marketing material for a new development is great, but don't put your money at risk for something that's likely to vaporize.