You can buy those homes for cheap but I think you have to pay all the back taxes on them as well.  

Of course if you find a lender that will give you this much money, it will not be cheap so be prepared for higher points and interest rates.Once you get a couple of deals under your belt and have more confidence and the experience to back it up, you might be able to raise some private money from friends and family. 

If investing out of state is too big of a jump for you, there are cities in California that are still "relatively" cheap.

Letters are generally cheap.  

Ours areas aren't cheap but the long term cash flow along with homes that who's appreciation exceeds inflation has been a great bonus. 

If something breaks you can't replace with cheap apartment style stove that is white.

I know, those are cheap shots about the Bears, I should be nicer considering the hell those Bear fans have been through since early 86!

The above doesn't have to be expensive, you can demo and sheet rock is cheap.

The condo is very low maintainance and cheap to heat, plan B would be to rent it monthly which would be less income probably but a lot less work. 

Land was cheap up here in the 50s and 60s so most of these properties sit on a lot that can accommodate 2500-3500 square-foot new construction