The property is is great condition just needs sprucing up and I can get friends to help repair it to code. 

A good project manager is expensive, so you have to calculate that into your margins.Try not to get too focused on the word "distressed", as almost all flips are in some kind of distress, whether it be the situation, the condition, or some other issue.  

No title company is going to insure that the condition of title is free of claims when there is an active, pending litigation.

Will your "comps" still be "comps" of the market conditions in two years? 

Are there any banks out there that will lend the other 75% on this property in its current condition? 

When we do this, basically I have to set it up so that both go to the same underwriter, same processor, same title company (in this case the title company of the purchase transaction would just be re-used for the cash out refinance), etc, but two different funders because they both have to push the "fund" button within a few moments of each other for it to work because each loan will have a condition that it can only fund if the other one funds.

Is it mostly the areas that are bad, condition of the properties or management? 

if they last min, decide that they can't move out for another couple days, you may be stuck with them there until you can evict them or they finally move. also, I wouldn't show the place unless I knew it was in presentable condition. they could be disallowing you in because they have damaged the place.

Not trashed, no eviction, the renters simply decided to move to another part of town, and left the property in reasonable condition.  

But the rehabs are well done, we average 3 to 5 maintenance calls per year, per unit.So i believe it subject to the maintenance, rehab/condition of the asset, background check of tenant, and relationship with the tenant.I believe the tenants treatment of the house is typically a reflection of the owners care of the property.