The listing price on their rental advertisement does match what they have called out on the proforma, so I would suspect the rents are for the most part accurate.

IF your cash into the acquisition is only $12,000, and IF all of the numbers that I listed above are accurate to the conservative side, then your cash on cash return appears to be about 80%.  

I have my own ideas about where to look and what to look for but I thought I'd gather thoughts/advice from the community if anyone is willing to offer advice.What areas would you search in for strong cashflow in B class properties?

I'm gathering as much info as I can, but am still scared to get started.

I buy a lot in rural areas, and can tell you it's very hard to get accurate comps.  

@Joe Splitrock   off to a new state they go  :)when I was running my HML shop I used an accurant product that was a fraud detection worked like a charm put in info they fill in on app.. if public records and utl bills don't jive you get a red flag back took about 60 seconds to compute. 

RentFax is a good tool for gathering demographic information before purchase.

From what i gather, from all your input speaking with others, and my own research,  a homeowner is able to pull his own permits and conduct the work himself as long as its to code.  

Michael Greer at Accurate Inspections and Consulting LLC.

This will happen just through the market activity that you analyze, and from the feedback that you will gather from other professionals in the area.