Unless the GC is pretty desperate for work, it's going to be hard to get them to warranty material they didn't purchase, as they have no incentive.I would also agree that good GC will know where to find higher quality materialsHope that helps 

Sellers were desperate to sell in all 3 apt buildings that I viewed that were vacant with city orders.  

Jason,You need to find desperate sellers.  

If I had $200k I would invest in single family homes (using leverage by taking out a conventional loan and putting 20% down on 15 year notes) that have been sitting on the MLS for several months that had a desperate seller (someone maybe paying 2 mortgages)...this would take some work, patience, and a good realtor willing to submit a lot of low-ball offers...ideally I would shoot for nice C+/B- homes (at least 3/2's) that I could buy at a discount (buying with equity built in) that did not need too much work...maybe some updating...but nothing major like a foreclosure or something on the courthouse steps that required me to manage contractors on a daily basis.

The low bid is a little low, sounds like someone is desperate for work, and will likely cut corners. 

My more desperate pitches went along the lines of "Hi I'm Richard I desperately need a house in this neighborhood.

And the landlord is ending the lease, not the tenant.Of course, if your lease and, more importantly, the laws of Ohio say differently, and if you desperately need to keep the money, then it's your decision. 

The bank files foreclosure and all these websites scrape up the info from public records, or if desperate, might buy a list directly from the bank. 

I guess in a red-hot market (Portland or San Francisco maybe), good tenants can appear desperate.

Maybe you find a really small house in a great neighborhood where nobody wants it there but you can make the numbers work because someone is desperate to get into the top school district.For the most part though, I like the homes in that are worth between 120k and 160k that I can be all in at 70% ARV or better and that will rent for 1350 to 1600/mo.