I usually just wait until people move out and then advertise and show them it, but I'm tired of them sitting empty for a month (or more) or having crappy renters that are looking for something short notice (because they probably got kicked out elsewhere).

Lol I usually log in on my phone.

I'm in Philly and on a duplex/triplex and owner occupied building.. you can put down 5%, conventional mortgage, 30 year term, as long as the rentals pay a good amount of your PITI, you're fine(4) YES.. usually (but not always) buying a property that needs some rehab work will net you more money in the long run because of your forced appreciation in fixing the place up (read: sweat equity). 

Ultimately,  private money lending would be a great option since they will not ask for as much when funding and usually can close quickly. 

Check with @Justin Eaton on the next local BP meet up - usually its every month.

There's definitely money to be made there, you usually only run into two problems with smaller towns. 

The description says that it's a burn out house and is not livable.

Peaks and valleys seem to run in 10 year cycles, with downturns usually triggered by bad news.

Whatever fits the rest of the neighborhood is usually the best route to go.

Getting with a investment lender can really help you with understanding the numbers and they usually have a preferred wholesaler that can be beneficial in your search for that first property.