Rents on slightly improved houses are easily clearing $1,000.  

Because later, you can easily use it as your mailing list!

I assume your family member and you are on good terms so this should go-over pretty easily.

You may also consider a SFH that has a wet bar (easily add kitchenette) and ability to create a second entrance - that way, if you don't want to interact with your tenants you don't have to :) 

Its one property, you can easily do this on your on.

Most of them are easily changeable for not much cost.

I could easily make this property worth a lot more then the purchase price within a year by raising the rents and improving the property.

You can get a home for $40K and rent it for $800 fairly easily but what if you buy a home for $55K?

Unfortunately (or fortunately) that information could probably fill dozens of books, and even then, I'm not sure there is a step-by-step procedure that will be foolproof.Part of the reason is that there are some things that can't be quantified very easily.

One thing to keep in mind is that St louis is right on the border w/ Illinois so equipment could have easily been purchased or stolen there too.