I am looking to invest in apartment units 12 - 26 in OH and I am from out of state?

I think I will go with the judge on this one.In fact, I believe the OP stated "They actually are looking at prior foreclosures that were reinstated." proves that lenders know they can do that very thing.Lenders are not stupid.

However, I’m also contemplating learning the flipping business, either by working with a flipper or trying it myself, to generate a larger cash position.I’m open to the idea of out-of-state investing but would approach it conservatively.

You can get a bridge loan (nice way of saying hard money) for the renovations and then, once all is back to normal, you can get a DSCR or other type of permanent financing done, but I don't know of any permanent financing scenario for an investment property that would allow the property to be in that state. 

They are out of state and their son is attending university and will be the co-signer.

In this case, again depending on state and local laws, you may be able to apply the deposit towards unpaid rent. 

You can find cheap properties in every state.

I spent a lot of time reading through my state's LLC laws.

Ohio seems to be the best state I see that is delivering better results.  

I wrote in the final Move Out Condition Report all the same areas, and at the end stated “$550 is deducted from $XXXX security deposit for cleaning of the living room/dining, bathroom, 2 bedrooms, and garage.