I've had that happen a couple times before, the only sticking point is that it depends largely on getting cooperation via docs and statements from the PM, which can be tough to do.  

In July 2014 I bought a 200+ unit deal in Dallas, TX for $6 million and at closing the property appraised at $7.4 million.The deal was off-market and I located by doing a strategic direct mail campaign.This was a tough repositioning deal, but since buying, I have spent $500k of my $750k rehab budget doing interior and exterior upgrades.I am working with a third party management company in TX and we have increased rents over a $100 per unit since acquisition.We increased occupancy from 84% in July 2014 to today we are 99% occupied.I raised $2 million for the deal by doing a syndication.

Without knowing the area, tough to make too much of an informed guess.

I've lurked minimally, but have read some of the material produced by BP beginners. 

Memphis has been tough for us so beware, if you do not already have a team with boots on the ground, what seems like a good deal may turn out very challenging.  

Property management on the residential side is very tough to make any substantial money with.I know friends who have hundreds of properties they manage with employees and they eek out 60k a year after costs.Hopefully you can build a better mouse trap but I have seen many on this forum over the years try to same thing.The costs are simply the costs.

I'd scope the sewer line and confirm material of water supply.

Tough to find houses, even distressed, that can be purchased at a deep enough discount to fix and flip for a decent profit and then the value of the properties have been rising so fast that it's tough to imagine the rate being sustainable to justify an appreciation play.

@Shane ClarkTiming the market is tough anyway.  

In my short time using the site I have learned a lot, and gathered a lot of material for future endeavors!