Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookYou might consider Niche or Specialized Housing like student housing, tourists or vacation rentals.

I'm considering a Direct mail campaign, but my area is a heavy tourist area, with about 40-50% being second homes and seasonal rentals, so absentee owner lists are pretty difficult to weed through, obviously I will need to focus on NOD's and Tax default, and death notice/estate/probate lists, anyone have experience in a heavy second home market?

We do have 6 million tourists a year coming here for the history which is not going to change. 

I was actually thinking about looking at a 4 unit multi family downtown as close to desirable tourist destinations as possible, and then renting out 3 of the units on airbnb while living in the 4th. 

Location is key, is it a tourist area, in a city near a college dorm and rentals, what's the market?

Sanibel and Captiva are a big draw for tourists, and they will not be accessible by car for a long time (I'd have to guess at least a year to rebuild that infrastructure). 

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This can make it an appealing location for residents and tourists alike.

@Joshua Wine hey there, I invest in Grand Rapids and would recommend investing in Kalamazoo.Grand Rapids houses are too over priced and it’s very difficult to find good deals.Kalamazoo on the other hand houses are cheaper so you can get better deals.I wish to be familiar with Kalamazoo so I can invest over there.

You could take either approach because we are a tourist and military town.