It's in a good enough spot to support low rent (even "nice" homes here can't get the rent they deserve) though and still get pos cash flow.

With the low interest rates and improving exchange rate, I'm also looking to expand my real estate investments. 

Your business appears to be the flipping business, not the rental business, which is why you don't understand how this works.The vast majority of renters in this country are low income and lower-middle income people.

Rent is low, no deposit free incentives...what the heck else do I need to DO to get folks to lease.Scott

Currently I only have one website which is intended to be a low resistance entry point for sellers, as well as a site for potential buyers/investors

I plan to buy them extremely low...It wont make me a millionair but I know the rents and I figured I can bring in a decent positive income if I buy them low enough.

If I was me in your shoes...I would certainly be interested in this project as well, however, barring a major problem at inspection, I would think about the fact that the owner possibly claims low expenses due to deferred maintenance.

This seems ridiculously low.

If so, keep in mind this will be a "cash out" refi, and the LTVs on those can be pretty low. 75% is the highest I've found recently (Wachovia.)As I've mentioned in other posts, don't fall in love with any REO.

Then I'll place my low ball offer.