Bakersfield should be on your short list as well.There are some really good deals in smaller rural areas which were hit hard by the drought. 

If you treat your LLC as a "disregarded entity" and file on schedule E you could possibly set up a separate Llc property management company and pay it a property management fee to get your "earned income" and file the property management company on a schedule C, but you would owe self employment taxes on your earned income, your state taxes and possibly other state  requirements such as workers comp, and unemployment tax depending on your state.  

Since the loan you are getting isn't technically a mortgage on the property, then the interest you pay on it isn't technically deductible mortgage interest expense on the Schedule E (which is where you report the rental income and expenses).  

I have a pretty tight budget.I am newbie when it comes to this subject but I have been researching and also downloaded several books that I think will help (Rich Dad Poor Dad, 7 Habits of Highly Effective People, E-Myth Revisited, among others).

So, maybe you can scratch Memphis off your list as well...  

Shoot me an e-mail - I can't post my realtors info or Bigger Pockets pulls it as inappropriate!

I would add to your list a comparable market analysis from a realtor to give you an idea of what you can possibly refinance for when done.

I&E tech (blue colar) in a local plant and before that aircraft mechanic.

@Bob E.

Screw up values, under estimate rehabs, get too greedy, etc, then I won't take your calls, e-mails, etc anymore.