Additionally, if the property needs renovation, you may have a tough time finding a HML willing to lend on it in 2nd position if it is in a distressed state. 

That's the reason we target distressed properties.

you have to find an off market deal that is distressed but not too distressed, buy it and close on it, have a contractor that you trust lined up to rehab it, oversee the rehab to be sure it stays on track, get it rent ready and then rented out, and then / in parallel refinance.how will you execute those steps in any market? 

If you find a deal on the Peninsula it's either distressed and needs a ton of renovation or not a good area.  

The issue I'm running into with door knocking is that all the distressed properties I find seem to be occupied by renters, and they aren't giving me the time of day.

You "create" the 20% DP by completing value add remodels on distressed properties.

Is distressed.

I specialize in off-market distressed real estate.

With todays higher interest rates and competition from other investors that drive up distressed housing prices we've hadn't had any luck getting new deals to pencil out.

He responded with “Hello this is Felipe wholesaler in Orange County Nice to hear from you hope your event went well I have motivated cash buyers That love places in distress or properties that aren’t listed in the market”I’m wondering how legit this is if he is a wholesaler and truly has buyers he is working with.