I think this strategy could have some real potential if you are willing to put in some effort. 

You wont put the effort into it.

I've started seeing some potential in pre-foreclosures but my agent is apprehensive as he doesn't feel it's worth the effort. 

Maybe it's time for you to concentrate on your job and put your efforts into making and saving money, waiting for that next opportunity.

Hopefully, it's a minor blip on the radar, especially as South Carolina seems to be getting back on track economically.Of course, we've added appropriate concessions to new leases and tried to incentivize renewals, and those efforts are being rewarded... 

Its not hard and maybe worth the effort.

A lot of the variance has to do with the level of effort you're expecting from the management company.

At best it would be a similar return with more effort, but could be useful if you are looking to establish a track record in order to grow to larger deals.

When a property has rents that are lagging those of comparable properties, the property may by a viable candidate for improvements to maintenance and marketing efforts.

If not, this house will be more expensive than a neighbor that is currently in good shape, plus the time and effort of doing the repairs.