My brother-in-law and I have identified a couple possibilities. One is a house in an Omaha suburb called La Vista. It's a bread-and-butter 3 bed 2 bath house that is a foreclosure property. Other homes in the area sell for about $110k to $130k and it's listed for $80k.
I think we can get it for less, but what I'm realizing is that the most difficult part of the offer phase is figuring out what will need to be repaired or rehabbed and how much that will cost. Not only do foreclosure properties generally need repair/rehab, but the way that I have been taught to invest is to do all repairs or rehab up front to minimize tenant issues during the first several years.
So, we either need to start calling contractors to get an idea of prices, or we need to just go through the process - do our best in figuring out a conservative estimate, put in an offer, and if accepted, hire an inspector and get bids from contractors.
We both still have full time jobs, so we're definitely in the exploration phase. Will update with more when we decide what to do.