So we would be mowing both sides with it, including the side we are living in.

I have taken into account all of the items mentioned and for the first year while living it in I would be able to profit around 120 dollars a month on average.

But networking with local investors is definitely something I am interested in.

Having a high income or net worth ("global factors") doesn't seem to factor in (I imagine it would factor in if personal finances were negative though!).   

I don't have a contract to use to lock the deal in.

Wayne IN. 

The problem is the amount of learning you'd have to do just to know what a good non-performing note looks like THEN have to go through foreclosure only to move in is way more effort than you'd have to expend to just purchase a house traditionally.

Also, a house that looks "flipped" but is being lived in is more attractive to buyers in my experience.

Honestly it depends on the price range your looking in. 

If seller signs with this clause in it then you can offer cash and you have your exit built in.