If you've chosen a savvy LO, they are your ally for just such questions. 

Managing properties in D neighborhoods is harder for three reasons:1) neighborhood blight - constant litter, vandalism, police apathy, petty theft, enviromental hazards2) tenants have ZERO access to savings or credit in case of emergencies.3) property condition- It would be unusual in this asset class to find a property that didn't need work-- probably a lot of work.Notice I did not say "bad tenants" and I have chosen a few real doozies but you can get those in any asset class.

Not sure what you're asking as the title and question are different.Funding of an off market deal isn't different than on market you have the same tools available.Finding an off market property can be done through the purchase of various lists and marketing to that list in your chosen manner, direct mail, cold calling etc. 

As humans, we tend to make comparisons and look back with 20/20 hindsight thinking the path not chosen would've been better. 

Each industry I researched turned out to be more of a gamble than an investment.

My sense is that there are chosen investors and contractors that operate within a system that is corrupt in Baltimore that will get the vast share of the value in the redevelopment of the C/D areas that will be redeveloped.

I also live in NY and I have chosen to invest in CT.

If you are Joe Schmo they don't know anything about it's a huge gamble for them to recommend to the seller to take your offer.  

Welcome to the club of many California investors that have picked the Midwest as a chosen investment location.

Some realtors have chosen not to show properties, but many of us never stopped.