He buys distressed properties from auction tax liens etc and works on the properties himself.

But by buying a list of multifamily in zip codes you like or driving around and building your own list through the tax records, you can often run into a distressed owner, a retiring owner, or an heir of an owner who does not want the deal.This year we bought several houses from the heir of a landlord - a couple of duplexes and another investor here on BP bought several of the single-family homes. 

They may look to the legislature to put restrictions on these types of real estate transactions.Consumer Advisory: Long-term Home Ownership Concerns (Wholesaling/Assigning Transactions and Distressed Rescue Transactions)While these transactions serve a purpose is keeping properties moving, there is a right way and a wrong way to do it.

I love distressed properties like this because the buyer usually gets (or should get) a huge discount compared to the work needed to bring the property up into a better status.Previous leases run with the property, so if a tenant has a bona-fide lease in place, you have to honor that.

Is it possible to use the BRRRR strategy to find a distressed small multifamily property and use it for a house hack?

@Hank Walter I know the 203K loan well and the 203K loan does have advantages if you are buying a seriously distressed property where your purchase price + rehab amount represents a value purchase. 

Any and all input on this 3-unit (1-bed, 1-bath) vacant and distressed property outside one of the Top 5 U.S.

You can buy distressed properties with conventional loans.Also, there are easy ways to avoid 6 month seasoning issues with conventional refinances. 

I would focus on a mildly distressed properties.

Often there will be mowing and even unpaid paving liens on distressed properties.