If you dont plan on going there and spending time there, really getting to know the area, then walk away....There are easier and better ways to invest your money and time.

Specialized skill in solving unique problems will set you apart from the run of the mill investment strategies and formulas.This a people business and a problem solving business, not a "real estate supermarket" where you merely pluck properties of the shelf looking for the lowest prices, highest yields, and comparison shop like going to Walmart or Costco.My personal preference after 20+ years of investing is that I would much rather drive a 2-3 hr radius digging deep for opportunity than hopping on a plane for 3 hrs one way, spending a week in a hotel and buying off the shelf.  

However I don't want to be spending my time doing non income producing task just for the sake of staying busy.Having less than 2 years of rental income I am unable to use my current rental income as "income".

Well, lawyers like to spend Your money, fighting a likely unwinnable battle.  

If it seems too good to be true, it is. 100% of the time.You would do better to spend time on BiggerPockets, browsing the forums and learning as much as you can.

I think it's one thing to spend that kind of money on a house that we could buy and over which we'd have control, but another to go into somebody else's deal. 

For example, research supporting why you're focusing on homes in the price range of $100K-180K, why you plan to market your properties through Craigslist, etc. because someone other than yourself may be looking at your plan at some point and they need to know the method to the madness.Good points to research are:- How fast are homes selling in your target price range- What is the median income of the local population- What is the median family size of each household- Where are the best neighborhoods located; best schools- Marketing: how are you going to convert leads into sales?

However, having spent 20-years in banking, I can pretty much guarantee you that you're not going to get any personal information about why someone hasn't paid their mortgage.My recommendation is, rather than spending time trying to figure out what led them to the place they currently find themselves, focus instead on the message that you can help solve their problem.  

I would recommend that you find a good hosting provider, (Godaddy, Hostgator, etc) and spend a day researching how to install a wordpress theme.

Spending about 20K to paint inside and out, add a new range, and stage.