The odds of hitting an owner at the exact time they are motivated enough to sell with a direct mailing piece are very low.

I'm not too sure of how the houses are as far as structural quality, but they don't seem too terrible from the road either.

Frank used lot rent (not home rent) and used 40% expense ratio (0.6) which gives a reasonably low offer price.  

If it's true I can cash flow there WITH a property manager in place, and it's at least a B neighborhood in terms of safety and tenant quality, then I will run, not walk, to invest there (I won't live there most likely).

I have a few low value REO's in a portfolio in a few different states that I am looking to liquidate to minimize losses, anyone know of any creative ways I can get these off?

It's a beautiful city with good quality of life, and prices are much lower than the DC area. 

It's costly and the ratios are low (like 1 deal per 1000 mail outs), but it's effective enough to do.

SWEET.ANYWAY, when buying especially your first property buy something of quality that you 'would' choose to live in and rent to tenants you thoroughly check out: verify income, pay stubs and 3 mos of bank checking account statements!!  

My thought was also that the $100K to gut and rebuild sounds low.

That was without even trying for low cost deals.