Your numbers:Average lead per marketing campaign = 3%Average deal per lead ratio = 4%Imply you're going to send 833 mailers and get one deal.   833 * 3% = 25 "leads".  25 leads * 4% = 1 deal.From what others write here (I'm not a wholesaler), you're more likely to need to send thousands of mailpieces to get one deal.  

And are you implying that the RTO will ofer a certain amount to me as the new owner and if i don't take it then what?

You imply he doesn't, and needs to think about it.Most landlord/tenant laws require a LL to treat all renters the same.

Low cap rates do not necessarily imply that you can't have cash flow.You can cash flow by renting out a newly purchased one bedroom condo in LA, no problem (as long as you don't use too much leverage).

An investment implies that you're putting up money in hopes of a return instead of your labor.

I'm not going to promote the book, it is from the 2000 and claims that the survey was done by the Federal government, which implied to me that it might have been from tax data?

This implies that there has been a previous buyer and that buyer has backed out of the deal.

They literally imply that you are just asking for your wife and children to be raped in their own home if you don't list with a Realtor!

You are taking different risks.Appreciation will be lower and the number of owner occupied homes is also likely to be lower.The crime rate might be high though this is not required.The management is likely more time intensive though this is not to imply that high priced areas always attract better tenants.Think of rental property as a job.

Assuming they don't already plan on asking the tenants to leave, this would imply a sales contract greater than 60 days, as well as other issues, like trying to inspect a house filled with junk.I'm curious if others have had success doing this.