I can explain the mechanics.Regarding that price point, it would make sense to go with a 2nd lien vs a 1st as the firsts we bought last year for similar investors turn out to be such low valued houses that unless you rehab them, you will not make little to no money.

@Kevin Farrell At all utilities covered I guarantee it will be more than 55% expenses unless you are extremely handy/do-it-yourself type. 

There are plenty of opportunities at low or no cost to meet local R/E Investors.

Is $550 market rent are is that low for the area as well?

If you work on a power listing team then you might get some listings.If you choose to work with investors on SFR the price point is very low in most markets under 100k a house.

Are there any loans similar to FHA where it is low money down for purchasing a rental property?

Low rents give tenants an incentive to stay long term.  

Maybe look at the low profile pattern goods with a thin , dense cushion, no thicker that 3/8" no less than 8 # density.

I am waiting to see what impact this is going to have on home values here with everyone selling so low..... or how much of an impact I should say.

I know the population has been decreasing for a while, but what's going in Wilkes-Barre that's leading to such high cap rates (i.e. sellers willing to sell their properties for really low amounts?)