Finding a property in a B-class neighborhood at 140k is almost impossible but a C-class neighborhood you can find that needs a lot of workAn FHA loan is really strict when it comes to buying a home that needs TLC so, I recommend getting a conventional loan at      3%- 5%.

Probate, divorce, foreclosure, evictions and code violation filings are all examples of distressed situations and can all be located by researching public records in your neck of the woods.

These are professionals with additional training and a stricter code of ethics.

This has been discussed many times...do a search.But in most jurisdictions you are not allowed (by current code) to convert a garage into living space.

Even this guide from Michigan is simply a guide and not a law or code.

I keep hearing how there's not much money for wholesalers in NY and how the strict laws make it a huge headache.

We have a trailing 12 data set that shows all the transaction pricing for each zip code in San Diego over the past 12 months I'd be happy to send along. 

Then go online and find that areas municipal code and start reading through it.

If they do, there may be very strict guidelines such as 2 year minimums, 180 day minimums, an HOA application and approval for potential tenants, etc... lots of weird stuff. 

I say that as some HMLs are strictly collateral-based and thus need you to have a property identified first.