I have been collecting my little list of "distressed looking" homes and then Ill get their names and send out letters. 

Personally I would be most interested in buy and hold rentals (or lease options), but any type of data collection can have application for the other types of strategy in the end (exit strategy contingencies, etc.).I agree that local news is a good source, though it is generally lagging (by about a quarter in most cases). 

Hamilton County also just entered into an agreement with AirBnB to collect occupancy taxes on rental rooms. 

Practical remedies?

Want to expand on my business book "collection". what are your favorite books that you have read for starting out in real estate investing, rental property's, business books..etc?

Practically, I can make a solid case that condo rents are not in perpetuity (more volatile than say, C Class apartment rents) as they require some level of negative cash flow (repairs) to maintain the rent-level. 

General expenses should be allocated across all your rentals, but if there may be a more practical approach.

Inbox me if you'd like to see it)I contact employers, current landlord & past landlords I make my decision based on all information collected and my qualification standards (Brandon Turner talks about Qualification Standards in "The book on Managing Rental Properties"It's good to have a standard practice of evaluating every applicant the exact same way, so I wouldn't say that you necessarily have to run a background check / income verification on every prospect, just make sure that if you don't, it's because something disqualified them before they made it to that point in your screening process.As for the adverse action letter...

i help folks solve issues from this practice on a daily basis.

Reopening decision will not be based on facts but will be determined on past practice in your jurisdiction.