row=1&source=webThis type rental in the area where I live would bring $450-500/month per LU, excluding expenses.

The MLS method is talking about works great, Direct Mailers have brought me some great success, you can also go to the court house steps auctions and hand out your business cards to the guys there and let them know what you are looking for and if their investor buys one of the fixer uppers by accident because they are typically site unseen that you are more than happy to take it off there hands, this works well and is another way to out source.

I've read that code enforcement/violaton lists are a great lead source so I figured I'd take a stab at it and see what I could find.

When the investor applies, the biggest mortgage he can take on is $1,166? 

My biggest issue is the building if trying to buy makes sense.

(the odors being my biggest concern!!)

At that price range, I would definitely self-insure.The biggest thing I would worry about, as you point out, is the lack of liquidity, which is a big deal to me.

They work on getting your money and closing quickly.The biggest risks are the inspection and clear title.

Meanwhile flipped homes were still purchased at an average discount of 13 percent below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year.”Major metro areas with big increases in home flipping in 2013 compared to 2012 included Virginia Beach (up 141 percent), Jacksonville, Fla., (up 92 percent), Baltimore, Md.

In the event of default/foreclosure the lender can only look to the property as the sole source of repayment.