One of the most rewarding methods I've used over the years is to select a neighborhood that I wanted to do business in, then park and walk or bike around it for hours to note which houses seemed to be vacant or distressed. I would also talk to some of the neighbors and inform them that I am a local developer looking to purchase abandoned or distressed homes in the area. It was initially surprising how many great leads I obtained from that method. I've obtained some of my most profitable flips from neighbors that informed me of a homeowner recently passing away and a family member wanting to sell fast or a house they knew would be coming on the market soon. Such info gave me opportunities to purchase directly from the homeowners at discounted prices. After getting to know the neighborhood on such biking/ walking excursions I would then send letters or call homeowners to express interest in purchasing their homes.
If the neighborhood really peaks your interest after performing the aforementioned, you could then start marketing on a larger scale via methods such as letter campaigns. I there is significant value in getting to know the neighbood and showing your face a bit. In my experience it's helped people feel more comfortable with giving me referrals that would lead to me doing development projects in their neighborhood.
