Sounds like you are doing it right - same thing we tend to buy, the ugly stuff. 

Do you have access to off market deals that an investor friendly realtors tend to have? 

@Alex Borczyk - just as an fyi - for passive multi-family investing, I've found in general the minimums tend to be around $50K (at least for the handful of reputable syndicators I've looked at investing with).

I tend to see more short-term rentals in the trendy downtown areas.

I tend to suggest Rotomolded, they're more durable and less expensive, without all the fancy jets and colors.

They tend to keep things in house and are have a bit more freedom to do want they want in these types of situations.

However, rural areas tend to have less multifamily properties (depending how rural) so that can give you an issue with finding comps for your purchase.

High crime areas will also tend to have the lowest rents.  

It should be possible to get a hard money loan to finish renovations but many lenders in the space tend to be hesitant to lend in these situations (running out of money mid renovation with already using a HML)

2) the financial upside of a non-performing note going to performing (funds will tend to take this for themselves)3) to not have all my risk concentrated into a few investments Partials seemed like a good option with those three requirements but maybe I'm looking for too much.