It's more of the areas desirability from the stand point of a potential renter or owner occupant.  

And by great location, I know you mentioned desireable tourist areas like like cap hill or near 16th st mall...or am I just as well looking in Cerry creek area or Wash Park?

I have a 20 unit multifamily near the Pasadena City College in LA (this is rent control but considered pretty desirable and not likely to severely crash in a decline).

Is it typical for the ROI on the less desireable homes to be so much greater, or is this a situation where the numbers really only work out when you buy distressed properties? 

I see a correction coming too, maybe 15% in desirable market and 20% in speculative markets filled with investors

I don't know where your house is, but the numbers you're quoting imply that it's somewhere very close to the center of town, or possibly near one of the desirable multi-use developments such as Mueller or The Domain.

I'm putting together a listsource list for SFR in my target area, and I'm seeing 255 results for my criteria unless I add in Equity Unknown to my equity filter (30%+), in which case it goes to a much more desirable 1052 records.Am I wasting time and money including the Equity Unknown or is it worth the additional investment to cast a bigger net?

I have no desire to create cash flow that will allow me to leave my current field- I love my work and my business is in great shape.

You can get higher efficient boilers and furnaces for Natural Gas as well as I find it is much more desirable from a tenant or new owner perspective.  

The move in fee is desirable.