What I like about buying distressed units is the foreclosed unit owners abuse rarely effects anything structurally, in some cases it has no effect on the mechanicals either.

It wont be your best investment ever, but it at least it will get you started.2) If you really want to spend the time making sure you get a home run, you need to find a distressed property that you can put the equity into.

Look for distressed homes in established neighborhoods, or homes in neighborhoods that are being revitalized.   2, Evaluating Homes for a Profitable Flip.

A lot of people make it seem like this:1) see obnoxiously grassy lawn2) knock on door3) see a visually distressed owner4) ask if they want to sell their home5) they say yes6) get them to sign a contract for me to acquire their home for 30% off the value7) pitch to buyers8) sign contract to buyer.9) send docs to title company10) receive cheque...and BALL OUT/ReInvest lolI feel like this is partly true but maybe missing a step or two.

Distressed sellers. 

You can use a private lender to purchase a distressed property, renovate it, rent it out and then pull 75% of the appraised value out during a refinance.

Finding deals is half the battle so without the knowledge and help from a mentor and without marketing yourself and to distressed sellers you are out of business.

If that is what you are looking to do, maximize short-term profits, you can't do much better than to buy a distressed asset, fix it up and maximize its NOI and then sell it in 3-5 years.If instead you are thinking more long-term, wealth-building then buy and hold can be a better approach.

I found a triplex that was distressed and the owner bought it at a foreclosure for $116,000 last February.

This type of deal works best for highly distressed properties that need extensive repairs, major remodeling, or a total gut.