Although there are good opportunities in small pockets of the city, I don't recommend out of area investors putting their money their, you could end up in a situation like Saul described.  

How would you describe the population in the neighborhood? 

From what you describe, you have a break even situation.  

Before I describe what "can" happen - regarding the eviction procedure - follow the law.

Charlie can you describe tha rent credit system?

A more precise way to describe it might be an "asset backed loan", but there are other terms as well.You (personally) would not have any equity in the property until you put the downpayment.As @Jay Hinrichs mentions, you should probably expect to put as a downpayment approximately 25% - 30% of the purchase price (i.e. the financial institution/backer would lend you 70%-75% of the appraised value), which based on the the numbers you mention, would mean that you would need to come up +/- $650,000 as the downpayment.  

David,Just seeing this thread so apologies for the antiquated reply.Are you still only looking for properties as described thus far in MO?

I am finally making that commitment and have a long term plan of moving back to my home town of Antigo Wisconsin and start investing in freedom from the hourly grind.I have done probably what is described as over-educating but I still feel like I have so much more to learn.

I have entertained doing what you describe, but have elected to hold.  

Best described in an example: say I make 25k off a 100k flip house.