Have you considered rent to own as an alternative strategy?

Of course with the low occupancy, you have to factor in alternative valuation methods like price per square foot which would push value upward maybe as high as $400-$450 (just below cost to replace) IF there is substantial upside. 

There is no way to avoid this.You can also set-up a self-directed IRA, do a direct rollover from your 401k to SD IRA and then invest in alternative assets with your SD IRA.

I plan on driving the neighborhood but does anyone have any alternative ways to find out what kinds of properties are in a certain neighborhood?

@Tiffany Archer - there are plenty of bank alternative lenders that can provide permanent financing for your deal. 

The cost in engineering fees, permitting, commissions, attorney fees, market analysis and development, utility engineering, water / septic concerns (possibly even having to build a sewage treatment plant), architectural fees.......etc... just to get to the point to determine if it's feasible is absolutely staggering. 

You might want to do a bit more research on alternative fillers.

Alternatively, "Seller shall contribute up to $100 to remediate mold." 

There are alternatives to consider as their are several turnkey operations in Memphis.

If you report the property as an investment, you depreciate and get better tax treatment.