In fact many properties being shopped around by wholesalers are actually just expired MLS listings (properties that failed to sell on the MLS) or active MLS listings under contract by a wholesaler. 

-Wholesale deals are all over the place - we've seen some great deals, some ARVs that are ridiculous, and some that are priced more than it would fetch on the MLS-C neighborhoods are going anywhere from 70 sq ft to almost 200 sq ft in variable conditions.  

I haven't been expanding my business with LMHA since the end of 2016 per my posts above so I don't know exactly what changed, but I expect the outsourcing of inspections to private industry + some executive level leadership + replacement of staff with new faces excited to serve the needs of HUD/Landlords/Those In Need has resulted in an agency I will develop more business with.The HCVP will always be a double edged sword for landlords (See Section 8 Bible discussion) but for now I have discovered it is finally worth the effort to participate in the program.I specialize in Toledo's transition neighborhoods, discounted houses on the edge of nicer areas but also on the edge of trash...the Section 8 program allows me to get long-term tenants who are a good business model provided they are consistently managed and visited/inspected for additional "visitors" (relatives and random dogs/cats) and damage/housekeeping which can destroy a home if left unchecked.You need to know the rules, repair and renovate for long-term durability, prepare for inspections thoroughly and keep a team of contractors who will hold those standards...after 8 years we have been through a hundred inspections.

We invest in the same neighborhoods.

It didn't occur to me when I shopped for this policy, but will our rentals even be covered due to different ownership?   

Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy.

Since I am focusing on cash flow I want to target B or C+ neighborhoods. 

It depends on the neighborhood and maybe even what improvements that hypothetical home built in the 1970s got. 

If so, which specific neighborhood?

The notes are all on commercial properties (office, warehouse, shopping center, mixed use or sometimes multifamily)The properties are either vacant or occupied by tenants, not owner occupiedThe property value is usually higher than both the UPB and the legal balance, sometimes significantly higher than theNow it is important to mention that I have very little experience with issuing notes and buying performing notes.