Like others have said...due diligence is critical whether you're choosing a house, a contractor or an investment partner.

It is critical they have their own investment properties or at least know what makes a great investment property.

You have gotten a lot of good advice and a lot of harsh criticisms.  

Know how to take constructive criticism.

Doing proper due diligence is critical but there are a few key things to look for that will make your analysis much easier.

Networking and having a local Team is critical to your sucess.  

to me most of the cash flow markets are interchangeable.. its management of the asset going long term that is critical.. and of course getting a solid house.however there are pockets in INDY I really like because of a lot of redevelopment happening in the same blocks you can buy cash flow homes.. you have some legit up side and long term appreciation.personally I think you want some appreciation potential along with cash flow you need it if your ever going to exit.

Cash flow is critical, and I have about $100k ready to go, and possibly another $100k or so from family/friends.

Criticism received and processed for future articles.

Note that I plan to keep one unit for my own occasional use when in town, so the conversion isn't critical to my cash flow.