Like everyone said, it is the main issue with out of state.

All strategies have SOME validity and returns, but the main thing is what works best for you in your current state of investing.

But the bottom line is they were using the D class assets as the base of their collateral or talking investors into buying them.. they raised a good amount of money through Alternative investment securities brokers mainly guys that rip people off selling high priced annuities.. 

My first main question is, is it possible to get a loan without having two years tax returns and with putting very little money down?

Main criteria is you need an llc, typically 80 - 90% loan for purchase, 100 rehab, and ARV needs to be below 75% ltv. 

I was mainly looking to do fix and flips.

That is the main reason I skip the neighborhood you are interested in.  

Social media, mainly Facebook ads, & create them hyper-local. 

My main focus is on single family homes.

Or invest in main road frontage not in rentals defined to subdivison, anti main drag minimums that never have the opportunity for other property pursuits