I am in the process of dealing with a homeowner in a distressed home.

I have $25,000 to put towards this, and I'm in southwest Ohio where distressed 3/2s are often well under 100k.  

The advice I can offer is be very careful of where you buy, many areas will never see any appreciation and the issues with distressed properties and tax problems, etc.

Do any of the licensee's out there do any marketing for distressed, off-market sellers?

the distressed owner laws came in to law in 07 or 08.. if your working with pre foreclosure make sure you book an hour with a very good attorney to understand what you can legally do and not do.we left that space in OREGON and WASHINGTON  as the laws are quite restrictive

I only door knock expired or cancelled listings or some other off market property where there may be a distressed homeowner.

Marc Walowitz United Financial Counselors3715 Main St STE 406Bridgeport, CT 06606Specializes in short sales and distressed properties

REO property is often times distressed.  

You might consider combining lists for your initial campaign - for instance use both Absentee Owners with Equity and Seniors with 20+ Year Ownership – maybe even combine these with Financially Distressed.

I was driving around looking for distressed properties and saw one with a sign on the door saying it was vacant.