We are in Ohio where homes can be very inexpensive compared to some other states.  

Currently, I have a few hundred dollars a month in expenses for my personal utilities, but my PITI is covered thanks to my tenants.

There's always some kind of built-in expense ratios for things like vacancy, property management (even if you're not using one), reserves, etc.The other problem I see may be the appraisal. 

I may also get involved in buying some lots suitable for building, if I can get them very inexpensively, as there is not now, nor do I expect there to soon be much building going on around here for a while, until the foreclosure market gets bought up more. 

Also, there are inexpensive devices to alert you  to the presents of water.

I bought her an inexpensive ring and proposed to her but we never wanted to spend the money on the wedding because eventually it just became a piece of paper.

This is inexpensive considering all things.

I told him we were only interested if we were able to pick up something relatively inexpensive (our rent payment was crazy high) giving preference to a home with the potential for rental income.He sets up another search and at this point he falls off the face of the earth.

There are some large areas that are pretty reliably bad, but those are also the areas where OOS investors can easily find inexpensive properties. 

At worst their investment will lose the property securing the loan, at best they will be tied up in expensive litigation for years.