We look for good school systems, low crime and desirable neighborhoods.

But, if steady long term cashflow is a goal, with no management, one can always sell farm land on a low down private contract.

There are quite a number of things that can make utilizing an FHA loan more difficult such as more barriers during appraisal, appearance of low qualification/little cash, typically longer closing period, likely higher interest rate, and PMI cannot be dropped without a refinance if 3.5% down.That said, just chain 5% down conventional loans, and make sure your duplexes pay for themselves.  

Some of the materials we choose and asked him to pick up (such as flooring) he replaced with low quality materials, I assume to keep more of our money for himself. 

Investors come to our market because of the low barrier to entry and that we have a solid tenant base that provides solid cash flow to out-of-state investors like yourself.

The bigger concern I would have is low pressure due to blocked pipes, especially to the bathrooms.

"Good" areas will be priced high, "Bad" areas will be priced low. 

When rent is too low it speeds up the leasing.   

We are not likely to see rates that low again in our lifetime.

Appreciation in most Sec8 neighborhoods is very low so it’s a cash flow play.- I would highly suggest you plan on using a property management company.