Also the deal size you are talking about.If you have say 100k to work with then small balance retail condo,office, or say an old town building might work for 100k investment.Those type of properties you have to work harder for yield.My clients tend to buy properties in the millions to tens of millions in price so cash flow is a consideration but secondary usually to passiveness of the asset, equity growth long term, and high quality location for wealth preservation.   

I used Asset Preservation, Inc. out of Roseville, CA as my Q.I. https://apiexchange.com/I am located in Florida and never met in person with anyone at the company, though I had several phone calls with a few different representatives.

There are efforts to revitalize downtown but some of that seems to revolve around preserving the architecture which can lead to some logistical difficulties for investors who want to rehab H/T @Will McGuire ."

As a Mortgagee you have a right to preserve and secure the property to protect your interest.  

My thought is it will preserve my cash which I can use on another deal. 

This will reduce your taxable W2 income (401(k) contributions offset your taxable income) and you are paying yourself the interest on the loan while preserving the ability to build up your retirement funds.

Is there a way I can get started while preserving my status?

I would try:REO agentsBecoming a vendor with national/regional property preservation companiesGo on MLS, find some trashed properties, identify who the buyer is, and approachTrustee/sheriffs saleFor preforeclosure, your primary goal is going to be signing up as a vendor for preservation companies.

Money-preserving rule: No matter how good the sales pitch is, never buy anything that day - always sleep on it and, if possible/applicable, research & discuss with spouse/partner/etc.Pro tip: Many times you can get books & tape courses deeply discounted on Ebay, Craigslist, your local real estate group, etc. from people who bought them and never used them.

Another benefit is that I'm able to borrow 100% of the purchase price (this preserves my funds for the rehab.)