This is just a start, but I think with a bit more information, you can avoid the usual answers here like, KC, Indy, Memphis, Austin, Cleveland, etc, etc (these are ALL fine markets, but I would assert that investing in any of those cities is NOT always the best choice for the out-of-state investor, based on answers to the questions above, as there are success stories on REI in almost every town in America).

Going to speak to someone in city.

Personally I really don't care why anyone would sell no money down but I've done it in New York and I've done it in Deland which is just above Orlando the reasons are the reasons

I'm living in a building in lockport New York area where there are two apartment units in the upstairs area and a commercial dining area in the bottom.

I have chosen a few markets around the USA to begin with including Des Moines, Salt Lake City, and the beautiful Pacific Northwest (I know large area, refining based on potential relocation) to start with but trying not to limit myself at this point.

I am looking to start my REI career soon and want to hear from some of the rehabbers in the city of Chicago who are doing it well!

I live in Nevada but have been looking in bullhead city AZ for rental properties.

Its a great place for cash flow and depending on your investment strategy there is a very wide range of types of investments.I have been working on the investment side of real estate for several years now and know the city very well when it comes to buy and holds.I own a few myself and have and have wholesaled and worked with a ton of buy and hold investors.You need to be careful of what you are really buy in SA though as what you are experiencing in Austin is happening here as well but mainly on in low-end properties.

There are few other strategies that are not listed here, but I would also look at city auctions, sheriff auctions and find a property that may be within the conditions/boundaries you both are looking for.  

I attend school in STJoe, MO, and I am originally from Kansas City, KS.