With C or below you probably can't avoid some of it so I'd go with a recency bias, ie anyone who has a long period of time between their last eviction and successful rentals other places will be a safer bet than the guy that just got evicted. 

@Nathan Gesner  Don't believe everything you read, especially on the web. 

I have some web design skills (I'm an engineer, so easy to learn new programming languages) and I'm currently testing my new system to manage the tenants.

He is not financially independent, but I bet he's living the life you dream of.Figure out what you really want, then start building a plan to get there.

There are very few sellers of notes right now, so who are you buying and selling too.You are going to be sadly dissappointed and realize after 3-6 months you probably wasted your money.Your best bet is to join some groups on FB or elsewhere and start to learn that way.Let me ask you this question: Have you spoken to any note investor out there to ask them about the environment today to actually get into notes? 

Out of state may be your best bet, everyone on this thread has suggested great markets.

Even still, investors will often want equity in the projects.Giving equity to private investors can hedge your bet.

In Metro Detroit area, police will not remove these types of occupants (they are afraid of scamming landlord having police remove legal tenants), calling them a "civil matter" forcing landlord to start court eviction process. thats a good question Drew.. but I bet if the police are aloud just a little bit of fact checking and do police work they can determine the fraud very quickly.. 

My bet is both those will be redeemed prior to auction.  

Do you have a web presence?