I personally don't like 30K houses in bad neighborhoods with lower returns.

With bad credit and little to no cash, what steps must I take to attain a rental property

It could become a bad scenario at the end or someone who really needs the time. always cover yourself for either scenario. best of luck and keep us updated.

I'm looking at some of these houses being badly/cheaply rehabbed and think : really ?

I figured it was a bad idea.

I feel like there has to be a ton of bad deals out there you just never hear about.

@Neel Jain - It is going to pass for sure and it is going to be bad news for Owner Occupants and Tenants as Prices drop and Rental options disappear as Mom and Pop landlord push a lot more inventory to the market.

Without knowing a remote location well or having a quality trusted team in place, I would be very hesitant to pull the trigger on a deal like this without having ALL of my facts straight and independently verified by multiple sources.Not trying to talk you out of it.  

Here's how I got there:$6800 GSR -$1700 Owner's unit (you'll be living in one unit)-$2890 Expenses (42.5% of GSR - left out CapEx, included management)-$2863 Debt Service ($582k @ 4.25% for 30yrs - that's 3% down on $600k)Total $653 cost to you each monthOnce you move out, you'll see ~$1050/month CF, which isn't bad.

I am having a hard time finding any quality individuals.