You'll need to decide if you want to buy turn key where everything is all done for you or if you want to do the rehab yourself.

For example, you set up key word alerts. http://www.biggerpockets.com/alerts

Peak Capital(Jeff Danley and friends) has purchased over 6000 units in the last few years based and a few key value add opportunities.  

Or should I just avoid them altogether or just say I am a cash investor?

For example, you set up key word alerts. http://www.biggerpockets.com/alerts

This is the key benefit of the new rules.Putting a 10% cap on the investments for those below a higher wealth limit ($500k/$2.5M) is not needed.

Make sure to add Milwaukee as one of your key-word searches and you will quickly become familiar with others who invest in SE WI.

Networking is key to success.Cheers!

You seem to have a good handle on the numbers...the inspection will be key also. 

Standard depreciation is where you depreciate the value of the house (minus an estimated value of the land) over 27.5 years.Accelerated depreciation is where you break up the key components of the house (i.e. roof, floors, windows, hvac, etc) and depreciate them over the IRS' acceptable lifespans of each one.