For what you are trying to achieve you'll want to stick to the suburbs and a few choice neighborhoods on the West Side of the city.

The proper answer is "it depends" I don't know anything about your case.I do prefer simple over unnecessary complexity.

Get a Quit claim or Special Warranty deed from the seller to you, (Preferable a Special Warranty Deed or equivalent)5.

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

We would prefer to have properties in our neighborhood so we can manage them ourselves. 

G'Day Alejandro,As a few have already mentioned, take a peak at Toledo also.In my opinion lower potential for long term appreciation but solid/"boring" cashflow.I prefer my portfolio to be "boring" but cashflowing lolLow entry points (Sub $100,000), high rents (Above the 1% rule).Blue collar working class decent folks that will stay and pay.Depending on the area but no derelict homes, yards well kept, cars with wheels and all tenants are employed.Plus, all are sophisticated enough to pay rent online so property management doesn't have to collect rents with bullet proof vests and shot guns lolI'm bias toward Toledo but it's worth considering.Wishing you much success

And they'll want you to pay off the loan pretty soon (and usually will you as the rate will probably be higher than banks) so there's that too.For this reason, we definitely prefer private lenders as they will (if you've built trust with them) often lend on the rehab too.

I subscribe to PropStream and Flipster and was wondering if either of these sites you use or you prefer a different program to find distressed properties and generate lead lists?

We are always priced under the market average for properties, as we prefer a slightly higher occupancy rate over a higher nightly price.  

So you prefer to be in the side of town towards the larger city.