So yes, to me, CA has a SIGNIFICANT amount more of homeless than what I am used to seeing, because IT DOES. 

I think an investor can find a nice property there that will cash flow and potentially appreciate.My issue is that the OP mentions that she disqualified Baltimore because the city had a declining population but was still considering Cleveland and Toledo.From my brief research Cincinnati and Columbus both have had population increases.

I think another trick is, can you get a mortgage or is it an all cash deal?

Do you have any idea of the amount of money you can contribute to the purchase of a property?

Perhaps we "buy" the house from them for the $328K balance to satisfy the lender and don't need a large down payment and then have a separate contract with them to pay $x per month until we've paid the full $172K amount.

I’ve invested relatively small amounts in “flyers”, and because the invested amount was small in relation to my overall portfolio chose not to perform a thorough due diligence.  

@Helena Goyvaerts rate for a 30-year fix would be at least 8.5% with some points (1% of loan amount).Most DSR lenders have a minimum credit score requirement from the applicant.

Now purchasing a home with cash is always good b/c obviously cash is king but also I think the part you might've missed is that, the money your utilizing on these home's won't actually be yours, but the banks or whatever institution you used to fix the home or make its value worth more.

You can add different ways to reach out to improve your conversion for owners you are hitting or you can increase the amount you are sending. 

Hey @Brad Roche - We do a significant amount of renovation loans (both Fannie May & FHA) here in Chicago and prefer the Homestyle loan only because it's less stringent on the borrow about what they have to repair, and they provide the general contractor a material draw at closing which helps the project start on the right foot.I thought the minimum down payment was 5%.