In a market like this you will get in the way of obvious appreciation.Then you can look for a deal that cash flows in your favorite market market. 

I've havent personally seen an IRS UCC foreclosure directly but have been warned by people who know their stuff that this could potentially prime the mortgage, so IRS filings for the sponsors/members, the entity, or any other correlated entities are a hard-decline for me (unless there's an installment plan and situation that makes sense).

How would i know what is a suitable area to buy in without having the "on the ground" knowledge?

What made you interested in investing in this type of deal?

I'm okay with a high interest rate up to 15% because I can still breakeven on the mortgage but not sure how to finance this deal without losing my initial payments

Since you're open to markets beyond NYC, you might want to connect with local investor meetups or REI groups in those areas to build relationships with agents, wholesalers, and lenders who understand the nuances of each market.If you're looking to break out of analysis paralysis, maybe start by narrowing down one or two target markets and running numbers on actual deals.

I don't know about you, but I'm BLOWN AWAY.  

The bigger issues that need to be addressed by the operating agreement are how you deal with disagreements. 

Not all great deals are listed on the MLS.

That’s a great move—starting early with analyzing deals will put you in a strong position when you're ready to buy.Since you're open to other markets in the Southeast, I’d definitely recommend taking a look at Chattanooga.