Sending a prospecting letter to the owner of a distressed property, tips wanted

[Dave G.]

Hi. 

  I did some driving around an area I am interested in purchasing in. I found some distressed properties and hunted down the owners from the local city government. These properties are coming under fire from the Department of Code Enforcement. I would really like to to buy one of these properties with a 203k loan and live in it. I am contemplating my letter that I am going to write to the owners and what angle to take. Here are my ideas:

1. Take the typical "let me take this off your hands" approach. Tell them I am interested in their property, tell them it isnt in good shape, that they are under fire from DCE, etc. Kinda make the reality of the situation sink in, and then offer a price to purchase contingent upon inspection. This price will he high enough to get their interest and allow an inspection, but wouldn't dream of committing to it as it would be well over what it is actually worth.  

2. Take an "I'm a first time home buyer, and I think your property is beautiful and has a lot of potential" route. I don't feel bad about playing this card because it is all true. I am a 1st time buyer, I want to live in it, and I think it has potential. Hey if its in a nice neighborhood with great resell potential... bonus bonus.

Well tell me what you think. From what I could find out about the owners, they are older (65+) and seem to be well to do. They only took out a $50k mortgage on it about 5 - 10 years ago, and paid it off a few years later.