The laws vary greatly from state to state.Regardless of what area you choose, I can not stress enough the importance of seeing the property with your own eyes or if you are investing remotely, having boots on the ground that knows the area you are targeting. 

If something breaks between pre and post walkthrough its far easier to identify the tenant causing the issue.Tenant screening is important; some folks have suggested some ideas to help.

A quick inspection gives you an idea of the condition of the roof and window, and water heaters and boilers/furnaces have a manufacture date on them to help you budget for their replacements.I guess it will be easier to have all that info in one place ready for you.

Since you have more cash on hand after the deal the next purchase you make will be easier.

I think once I figure out how I want to go about it, it'll be easier for me to make a solid plan for myself. 

Do more research than you think you need becasuse its easy to make mistakes and its even easier to get taken advantage of by greedy sellers.

The wealthy developers I know will often ask for owner financing just because it's easier than tying up more cash.Cash is king and just because you have it doesn't mean you want to have it tied up.

I would say your targeting and action is outstanding, but I think you might have moved too soon if the property is not cash flowing.

I think the target like always though is the homes that have not seen much love and need major reno work.. to get them up to date.. foreclosure or payment crisis seems to have subsided.although there will always be people in financial stress for one reason or another.

If you can acquire the place for no interest or very low interest it will be much easier to meet him/her on price.