That looks like your problem - only 3% down (can you get that conventionally if its a pure rental property - i'm not 100% but I don't think so) - with that leverage (97% LTV), pretty much nothing is going to pencil.

For instance you can set up a fund that invests in real estate via syndications that offer tax benefits to investors where REIT produce purely ordinary income.

For a pure cash flow investor that doesn't care about appreciation it might make sense.

It also cracks me up that Flint is on this list but not Detroit.Maybe they're filtering purely by numbers with no regard to the quality of the city/area?

I've shown them the returns, and their fear is so great, they are turning down 25% cash on cash returns from pure fear and mistrust, and these are my friends.  95% of the people you meet will talk all day long, read books, and make plans, plans, plans, and never invest in real estate. 

Running #'s just looking at properties in and out of state (I live in Las Vegas), I do not really understand how pure cash flow (even a small amount) is possible given these current loan interest rates unless you find the deal of the century. 

Assuming this is purely for investment sake, $55k on a $615k property isn’t a good use of your $$$.

Or a pure rental property?

If the pure reason for moving is real estate costs then you are already in one of the best markets where you will get the biggest bank for your buck since you can use leverage and purchase a single family or condo with 3-5% down like @Brianna Billings has done and proven its possible...or you can look at multifamily options and purchase a duplex with FHA loan and put 3.5% down or put 5% down for a conventional loan and purchase a 3-4 unit property.  

Just pure curiosity - trying to get a feel for various markets.