I thought at the least I could physically confirm the address that was given to me.

 I am a newbie living in Bay Area, trying to explore some potential locations for investment in Multifamily units.I am doing some research on Reno/Sparks/Fernley, because of their proximity and possible potential.

Most have a basic allergy to mathematics so you have to make sure they haven't "accidentally" made a mistake.  70% of brokers don't know the difference between cap-rate and cap-ex.Have you physically been to the property yet?  

In WI there is no duty to disclose, as it is not a physical defect to the property, I have been watching one in my area for some time now, and buyers have been scarce, the issue is it is stigmatized, even though you are not required to disclose in WI, everyone knowns, and someone will tell the next occupant, that may be a problem. id say unless the deal is so good you cant pass up, leave it alone.

Any idea if they have to be in close proximity or can most banks do HELOCS anywhere in the country?

Especially if you're looking at the areas zoned to Klein ISD it seems like you can get good schools, along with comparable proximity to downtown as previous mentioned areas.

Fair enough people, And agreed 100% if you don't know the market well enough or simply as @John Arendsen said feel more comfortable in investing localy for management and proximity purposes I understand and investing in aplace like Cancun is not for you. 

Find out which people in pre foreclosure are not shortsales then physically knock on their doors and see if they will sell.

If they do not want to have more investment property they can 1031 and put their money into a DST which would offer them passive cash flow without having to physically manage a property. 

Google both titles to learn were to purchase.For Placer county I still have to physically visit the courthouse.