The dumps in those neighborhoods can be bought in the low 5's. ie.

I've heard Memphis has good rental deals at low prices. 

Make sure that the inspector actually tests the quality of the sludge and leach field.

Thanks @Darian Harris - how bad is the tenant quality there?

Ideally my first deal would be a flip in the low 100k range.

The Lowes or Home Depot cabinets that come pre-built are better quality and don't cost that much more. 

Strong ethics.And beleive me in my 20 years of lending in the Turnkey space I can tell the difference between the low character guys and the guys that will stand up and do the right thing.

I would also check the quality of the screening material, as some are more durable than others.

Commercial loans are generally 20 or 25 years amortization so the minimum payment may be almost as low as a 30 yr conventional mortgage if you factor in mortgage insurance (at least for the first 5 years).

I think the impact would come from the loans that were previously modified at ridiculously low 2-3 percentage interest.It's hard to compare apples-to-apples without knowing which kind of notes the fund you're referring to is investing in (or creating)