A great place to look for distressed properties is on the HUD website (link below). These are homes that had government loans and were foreclosed upon. I do want to point out that distressed properties usually end up costing more due to neglected maintenance. In order to rent a unit you will have to get a rental C.O. which is usually harder to get than a standard purchase certificate of occupancy. You might want to talk to a mortgage lender about a 100% USDA loan so you have more money to play with. I wish you the best of luck on your search.