The best list is the one that makes money for you based on how you want work deals.I started by working foreclosures, which meant that I needed a simple way to eliminate all records that did not meet my minimum equity requirements (50% in my case...now).The strategy was simple: I mailed, knocked and called property owners in default prior to sale.Most of the problems are people problems, meaning issues between parties, as opposed to the soundness of prooerty structure. 

Go talk to people, knock on doors, send direct mail, put out bandit signs. 

It is more of a solid B area for young tech people.This is not meant to be a knock on those who believe in "cash flow" and feel appreciation is just the frosting.

If you find someone who wants to sell their house to be rid of it and don't really care that they are at a disadvantage knock yourself out....go for it. 

I know a lot of folks knock it, but for those like myself without direct MLS access, it's not a bad alternative, especially since you're selecting appropriate homes and can better compare apples and apples, sometimes.

I really believe in Georgia as one of the best states to because it doesn't require real estate licenseI like expired listings where I knock on the door and give the seller a free report and if they are not home I'll put a little yellow sticky note on the door saying "is this house still available for sale?"

So far (knock on wood!)

vacant houses pre-foreclosure tax default burnt out landlords auctions code violations fires estates non arm length transactions rent court knocking on the doors of the above mailing to the above calling the above etc.

When knocking down walls etc. one cost that can be big is if the local city or county requires adding a fire suppression system to each unit with sprinklers etc.You have to remember older apartments many times are grandfathered in on old codes but when you go to do studs up they add all this crap that you didn't know about before driving up your rehab per unit.The main water line from the street to the building could be compromised and need replacing.

Many new knock-offs are coming on line from other Internet marketers.Although the CRM aspect is nice, the real motive for dropping the entry barrier and having as many users in the system is all about deal flow; that is, "arbitrage".For every FreedomSoft deal closed, a couple of points on the spread is earned as a management fee.There's nothing wrong with that, per say.