But I also see huge potential..especially if it gets cleaned up and who knows, someday it could become a desired area again and prices could increase dramatically.

I was in the 6,000 or so range and my post count along with many other BP members shot up dramatically.

In this example, I could easily see the operating expenses being ~$125 a month less in my area which dramatically increases your return.

 $100/door on one property can have a dramatically different IRR than $100/door on another property.

It increases your savings rate dramatically which helps you get to deal #2 faster and you begin benefiting from the appreciation/amortization that comes from owning RE. 

The rents are about to start increasing dramatically because of the transition to conventional apartments...I am sure I can get in touch with the owner...Is there any way to position myself to make an offer on this property?

I am focused on finding 4+ unit apartment buildings, so that limits my scope dramatically. 

I would then look for a duplex or triplex to live in one unit and rent the others, ideally covering a bulk of the costs, and reducing my monthly living expenses dramatically.

I did accomplish all of these things, however, while I was in flight school, 911 happened, and it dramatically affected the airline industry.

My guy also said rental rates took a dramatic rise in the time period you stated.