@Bob Floss II I agree, one of the intermediate-term tailwinds of SE WI is the migration of some IL residents to lower tax areas, NW Indiana has also added residents from this trend.  

I look for 10% COC returns as you can see in the model and per my analysis, you would reach that by lowering your offer.AssumptionsDownpayment: 20%Closing Cost: 6%Amortization: 25 yrsInt Rate: 5.3%Occupancy: 90%Purchase price: $240kPurchase Price: $160k* I hope this helps and makes sense.

For example, is it smarter to buy a higher priced condo on the beach, or a lower price condo a few blocks away from the beach?

Profit margins, after paying lot rent, is slim but possible in the lower quality communities assuming lot rent is low.

Is there a difference of $2000 or more in terms of chase and BOFA charging the lower closing costs than Wells Fargo ?

A good time to purchase a foreclosure is during the pre-foreclusure phase since the competition may be lower around this time and the purchase price you negotiate may also be lower than when it goes public.

Artificially low interest rates and lower prices incentivized investment through healthy appreciation.

Most of these homes are very poor locations and very poor condition.You need to hire someone to go out, access the property (drill out locks, install new locks, and install lock box with keys,) clear the property (many of these properties have squatters living in them,) secure the property (lock windows, fix broken/unsecured points of entry,) evaluate the home, build a rehab budget, and send over pictures and/or video.There are several GC's and home inspectors who are offering these services for the MI/OP clients.

The barrier to entry there is way lower than Fort Lauderdale / Miami and deals seem to be more abundant from the research I have done.  

It seems unlikely I'd find a deal on a property that's significantly lower than the market average.