It may be beneficial to consult with a contractor and real estate professional to assess the best option for your specific situation.

There are multiple groups posting off market deals daily.

Example you are owner operator and it clears 200k a year profit so at a 3 multiple worth 600k about as a business.

I do the math to figure out these ratios for each applicant which is harder than you think sometimes with people working multiple gig type jobs with inconsistent income because then you also need their tax return to calculate factor their expenses in.

It makes you more competitive if there are multiple buyers competing for a house, many sellers are reluctant to go under contract unless they can mitigate the risk of not closing due to financing problems - they do this by only signing with folks who are either pre-approved or pre-qualified.Another reason for getting funding lined up first is that you will be way less stressed between going under contract and closing.

Which one is appropriate for different situations? 

Obviously the most important thing is that you feel comfortable with the situation 

This is definitely not a route I would ever take investing in a situation/location like this.

As Jonathan mentioned, seek out an agent (independent agents write with multiple insurance companies) who writes in both states and have them run the quotes.

I also have multiple investments as an LP in multi-family properties and I have 5 single family long term residential rental properties.