I understand that I will need a right to purchase agreement with an 'assign to' disclosure so I'm able to 'sell' the contract to an cash investor.

I really like it as a in between between a Memphis and Atlanta  from my perspective the security issues are better there than a lot of Memphis and other areas. and the city has topography so lots of day lights and better bones .I will send you over contact of who I work with... but full disclosure J Benoit also does some stuff for us  not directly but through his management and sales efforts.Good people there in B ham. 

What's been said above about disclosure is true, and my belief is that a seller that needs to sell is not going to care about you disclosing. 

I am wondering if there is reliable  and effective software on the market for finding privately owned distressed houses, before these properties have been subject to formal disclosure action and have become publicly accessible knowledge. 

Your agent should help you with this process and other disclosures pertinent to your transaction.Hope I was helpful. 

If you are a senior or lowincome, call your local Legal Services, 1-866-LAW-OHIO (1-866-529-6446).What the Law Says a Seller Can’t Do• A Seller cannot sell property by Land Contract if the Seller owes more on a mortgage on that property than the balance due under the Land Contract.EXCEPTION: a mortgage that covers more property than just the real property sold on Land Contract to the Buyer is acceptable if the Seller has made prior written disclosure to the Buyer of the amount of the mortgage. • A Seller cannot put a mortgage on property being sold by Land Contract during the Land Contract in an amount BIGGER than the balance due on the contract without the consent of the Buyer.What the Law Says a Seller Must Do• Every Seller must, at least once year or upon your demand, (but no more than twice a year), give you a statement showing the amount paid in principal, amount paid in interest, and the remaining balance owed.• The Seller must RECORD the Land Contract in the County Recorder’s Office where the property is located within 20 days of signing, and it shall contain the legal description of the property.

We put in an offer on house after our agent showed us disclosures and didn't highlight any areas of concern.

Because we are purchasing the property "as-is" the seller wanted to update their disclosure forms.

Some immediate cons I can think of are:Lead based paint - In some states it's disclosure only.  

@Catherine Peters In full disclosure, I am a broker so I'll put that out first so you know my bias.