Seller's response: He said, "Yes, I have heard of a land contract, but I’m kind of hesitant because I know some locals who land contracted their assets and ended up with a distressed property after a few years.

Often when new investors are excited to scale, especially with limited funds, they start looking into to getting a third on seller finance or sub to, but the first two properties have repairs coming and all you do is add a third property that needs repairs to your portfolio.This - "investing with limited funds (like distressed property flips)" - is an oxymoron.

There are so many ins and outs when buying distressed homes it's definitely something you'll want to be able to lay your hands on, at the beginning at least.Buying turnkeys is a great option as well, there are some larger companies who offer lower interest rate options while operating in more affordable states that are landlord friendly.

It's usually a financial distress but not always.

The top chart below quickly shows you what the renovated, avg and distressed homes sell for in that area on a $/sf basis over time, so if you are estimating way over the top line, you instantly know something is off, maybe you have an outlier comp on your hands, etc.It doesn't have STR data, because any STR we build must also pencil as a LTR to avoid being upside down if it doesn't workout, so we use normal residential lease data when underwriting our rentals.As for forecasts on the market, I don't do any aside from the current Q trending % at the footer of the charts, and it's really just the current Q's average data/performance held constant and applied to the rest of the quarter (since not fully done with Q yet).

I've made a few offers in the last few months on very distressed properties, and I keep getting outbid.

Distressed notes have been on the decline for a few years, as we have dug ourselves out of the real estate crash.  

Henry, when working with distressed debt and modifications for re-performance, 12% is not hard to realize for yield and Dave has this process nailed down from years of experience.

Another option is to do the BRRRR method, buying a distressed property from a wholesaler, direct to owner or even MLS sometimes, fix it up and force appreciation and then refinance all your money out. 

It involves investing in strong growth markets, diversifying, and buying distressed properties.