From a personal perspective, recently been looking into various south east locations as a prospective owner (I live in Atlanta) and Memphis is one of my target cities (along with Nashville and much of Florida Gulf Coast).

Targeting additional locations costs me significantly less than someone who is starting out new.

Drive around neighborhoods that you potentially would like to target and look for distressed looking properties.

This is something I've considered as deals are getting harder to come by in my target area.  

I'm actively searching my target market for a multifamily property (duplex or triplex) that I can live in and rent a unit(s) simultaneously.I've considered broadening my search criteria to feature single family homes with a mother-in-law suite (accessory dwelling unit or ADU).This would give me the option to either live in the main house or ADU while renting the other.

In many states it is considered predatory targeting preforeclosures and also marketing as if you are "helping the homeowner", as based on what you are saying it does not really appear you are helping them but performing a service to them for a fee - big difference. 

First, I agree with a target of 15% to 20% annualized return for value add properties is a good minimum target for real estate.Two thoughts on the apartments:A lot of apartments have been purchased on pro forma for converting to condos where they assume a purchase of $100,000, add some for condo-ing and fix up, then sell for $150,000 or more.Or, If it's an institutional buyer with all cash, a stable 4% or 5% cap rate with possible increase may work to make sure they have some residential in their portfolio mix.If I missed your question let me know.

There are folks out there who target people like you with, at best, bad deals, and maybe out-and-out scams.

If the average house in your town is 3 bdrm, 1.5 bth, 2 car gar, at $150,000 then would neigborhoods that fit that criteria be the best place to target?

I believe the HOA is targeting and harassing me due to racism (because the family is a minority) and trying to find any little thing that is out of order.