My $0.02, if you are open to the idea of finding a new primary and turning your current home into the investment, this is 100% going to be the more cost effective method in terms of financing.

There is an "ABC test", as follows:Under the ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions:a - The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;b - The worker performs work that is outside the usual course of the hiring entity’s business; andc - The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.But under B, my business is renting residences, which includes sometimes fixing a broken doorknob. 

Method 1 is much more certain in creating equity to then use on a heloc and method 2 is going straight to work... thoughts. am brand new to the area. very little if any SOI.

As for contacting sellers, you could always go the standard route of a realtor who's likely got methods for reaching out to homeowners.

Much will depend on the nature of the repaired roof. 

So my question is, what method do REI in California use to get lists and phone numbers to be able to cold call homeowners interested in selling their properties?? 

You should probably post all the numbers e.g. total cost for the property, rental income, property insurance, property taxes, current owner's cost for natural gas, electric, water, trash removal,  etc.It sound like a building I would stay away from.

Any preferred methods or ideas would be a huge help!

We have a very strong No weed policy that clearly spells no possession or growing of weed in addition to smoking or any other method of consumption in or around the house.I run across the offending tenant who after first denying confesses to having weed in his possession.Note:  I did not catch him smoking weed.

I am thinking the the BRRR method can be employed here but I am unsure how to proceed or predict if that's a sound strategy.