I'm an agent here in Pittsburgh and I work strictly with investors.

He and I strictly deal with Investors and they are always coming across great deals.

Take those out of the equation and view this strictly from an investors point of view and it is NO CONTEST.  

Hi Aqsa,I'm bias but then again, I've owned real estate all over and haven't found a better market for sub $100,000 than Toledo.Low entry price pointHigh cashflowEmployed tenants that pay rent onlineDecent areas with well kept homesNot much appreciation so IMO it's a strict cashflow play.If you find and buy off-market you can snag some great deals for sub $60,000 purchase and rehab.Quality of workmanship is the downside and so is motivation of other folks needed to make investing from out of state work.So beware.These are the downsides bit like with any market, you will always have pro's and con's.All the best 👍

Or strictly start investing in LTR's?

This makes more sense to us than relying strictly on  rigid yes or no criteria where any negative  disqualifies a candidate entirely.Some criteria is weighted more heavily and can overcome negatives. 

Even if you aren't ready to buy, it will give you so much insight as to what properties are in what areas, how much they cost, etc.I'm an agent here in Pittsburgh and I work strictly with investors.

I've been keeping a strict record of transactions and deals over time, which is how I knew when I met the 3500 point qualification.

There's nothing preventing the former owner from qualifying as the prospective owner-occupant as long as they meet the strict guidelines for being a prospective owner-occupant as set forth in Civil Code 2924m(a)(1). 

You need to have some strict verbiage in your listing and your RA about this.