I had the capital and I did enough research and I didn't feel like I was gambling.

I feel like this was a big gamble for the OP because if other STR landlords are irresponsible, the association could stop STRs- but he should be fine if he has to transition to long term and rent a room at the hotel when he’s in town. 

I started with defining the characteristics of what I call a "good" tenant.

It also would be a weird letter to send to a lot of the duplexes here in town, because most of them are in subdivisions full of identical properties.At this point I think it's basically gambling unless you're committed to mailing the same addresses 8-10 times minimum over the course of several months.

However, in this crazy Dallas market I think it is more of a gamble; since nothing cash flows, I would be banking on the property appreciating vs bringing in passive income.

It depends on your portfolio's characteristics (and your credit score, liquidity) but the typical range is about 4.75% - 5.5% for a 30 yr fixed, with a 5 year prepayment penalty (if prepayment penalties are allowed in your state -- some states, like OH, MI, PA have restrictions on prepayment penalty terms & fees).

@Wendy DetersI wouldn’t gamble your retirement on flipping.

It can be hard to comp a property if there aren't any nearby properties that have similar characteristics.

what are good characteristics (filter options) or what is the best way to structure a pre-foreclosure list for the SoCal Market?  

I’m even willing to make the payments under the gamble of never getting it refunded, if I can get proper documentation.