So lost...

Jason,
Your not alone in doing this, there are others out there looking for cash flow in the properties.
You mentioned that you have had some success in other financial markets which is a good thing.
When you are looking for cash flow properties you have identified the two starting points
-Buy-fix and Hold
-Buy-hold
Coming in with no prior rehab experience, getting into a property that does not need more then a good cleaning would be a simpler starting step for you.
An acceptable cap rate with be 8% and up in the area your looking to invest in.
Remember when figuring out the Cap Rate use the following steps

Gross Income (Annually) - all expenses (Annually =Net operating income

Net Operating Income / purchase price = Cap rate
.....
Considering the ratio you would like to come in with
"Looking for turnkey properties that I can use my capital (30%) plus a mortgage (70%) to trade for positive cash flow."
It should not be difficult to find cash flow in the area.
Contact agents that specialize in cash flow properties, contact ads for existing rented properties ask the landlord if it is possible to buy the property after renting or if they are looking for more rentals(building up a buyers list for the property that you do not want to keep)
If the numbers are not looking profitable then see which ones can be changed, make your offer. If it does not get accepted, put it in a file to check back on the property in a few months and see if it is still there.
These are just some suggestions to get your started. Let us know how you are doing.

Jason,

If you are willing to look at other cities, you should consider many places in the Midwest. Kansas City comes to mind as well as Columbus and Cincinnati. Using the formula above taht John gave you, you should not have much of a problem finding properties that will pay you around 15%. Also, consider Indianapolis, Syracuse and Buffalo. All of these cities are great places to get a nice return on a turn-key investment.

Determine the market rents in your area. Take the monthly rent you will charge and multiply that by .6 or .7, That will give you the amount available to service the debt (P & I) and provide cash flow. The .6 or .7 allows for 30-40% expenses (taxes, insurance, maintenance, vacancy, etc). 30% should be minimum, 40% allows for outside management and more maintenance for older or neglected properties. That is a quick way to estimate the numbers. You can then plug in the actual taxes and insurance costs to get a more precise evaluation.

Example:
$100,000 property rents for $1,000/mo
$1000 x .6 = 600 (amt to service debt and provide cash flow)
$70,000 @ 5%, 30 years = 375 P & I
This will give you a cash flow of 225/mo
On your 30,000 down payment this will yield you a cash on cash return of 9% annually.

Jason,

I would recommend that you join a rei club in your area; meet other investors who have purchased turnkey properties in your area and in other states who can recommend you to some turnkey seller investors.
Before buying any properties, always do your due diligence! Get market comps for the properties that are offered to you to make sure they have equity, otherwise you won't be able to refinance them (you can purchase the properties cash, then refinance and get 80% of appraised value). You also need to find a bank that will (re)finance the properties with no seasoning (a 6 months to a year ownership of property), and will use appraised value (not purchase price). You can ask turnkey seller if they have a bank they can refer you to...
Always verify that the properties that you buy as turnkey are actual turnkeys! You will need to either go look at the house yourself with a contractor or have someone you trust do it for you. Ask your contractor about large cost items, ie. foundation issues (cracks), chimneys, roof, windows, age of furnace, air condition unit, water heater tank, water issues in basement, electric panel.
Check area where property is located (A,B,C, D neighborhood?); check insurance costs. Use a title company to make sure there are no liens on house.

here's link to find rei club in your area
http://www.creonline.com/Real-Estate-Investment-Clubs/index.html

Wishing you success,