If you have a competitive advantage that you can bring to your co-hosting/managing, then I would recommend looking for owners with properties that mesh well with your target resident.For example, if you are an active duty military servicemember with unique insight into what a servicemember is looking for, lean into that.

Criminal activity is not a protected class and actual values and opinion of values and their trajectory is just data, right?

LOLOkay, buy the lien at a discount, some might go at ten cents on the dollar, keep it active, collect later with interest.

We are actively managing two fund offerings, one focusing on real property (REO and off market properties), the other focusing on Pre-REO (vacant first mortgages).

Sounds like this could possibly be a Schedule C activity so keep self employment tax in mind.

A lease will not guarantee that your tenant will pay rent.The more active and proactive you are, the better everything will go. 

I am actively expanding my STR consulting business!

Personally I wouldn't feel comfortable trying to wholesale a relatives $1M home knowing that I am breaking the law if I cross over into doing anything that can be considered representing them in the transaction, and knowing it will only be marketed to people who buy properties wholesale (typically investors who don't want to pay retail prices), instead of the majority of retail buyers active in the market who are typcially willing to pay more. 

What's the activity level been like?

In Central Jersey where the majority of our sales activity is, the towns vary widely in enforcement of this.