I don't mean to be negative and obviously, you are going to do what you want to do, but to put it in perspective, I bought one of my 1st properties in 1990 (at a peak), and sold at a significant loss in 1997, due to specific circumstances.

Specifically, short-term rentals can help you get REPS status.

Well even if the rent is equal to the mortgage, you'll still be in the negative after repairs, CapEx, vacancy, etc.Why would you specifically be thinking of investing at a negative cash flow?

For the most part vs focusing on a specific neighborhood or two I would say keep you options open to all. 

But for many people, it is one of a number of sources of deal flow, to add to MLS listings, wholesalers, direct owner outreach, auction, etc.Assuming you are specifically talking about sheriff auctions, just make sure you familiarize yourself with the general procedures for the auction.  

Curious...have you already identified a specific neighborhood in Findlay where you see the most potential, or are you still exploring the entire city?

This puts both you and them in an uncomfortable situation, as you are inferring that they didn’t already price it fairly.Don’t make a list of the flaws of the property and use that to try to talk the seller down.

On a positive note we did build a new house to the specifications of a specific tenant. 

Specifically, Texas has some of the highest insurance and property taxes in the nation, but the appreciation makes up for those high costs in the long run.

That is illegal unless you have specific licenses.