These properties were well known to the professionals involved in finding housing for felons, sexual offenders  and people with mental illness. 

BUT, The properties there haven’t appreciated much over the past 20 years I’m just curious what’s the better bet for us just getting started?

Got to think there are safer bets out there.. and it really depends on your financial situation and your stress meter some folks would stress out and lose sleep, others this is just water off a ducks back.. 

Expect for there to be a lot of additional work involved in it - you basically have to block the top and bottom of every stud bay.

We wouldn’t be actively involved.

Does anyone have any advice or creative ways to finance a deal like this when there are so many risks involved and at a time when there is a lot of uncertainty in the marketplace? 

I am also willing to be actively involved at first but the ultimate plan would be to have a good chuck of it be hands off and be active in deals I enjoy.

. :) home is worth 700k as is: so they offer $700k minus 6% bc there are no realtors involved... or minus $42k and each pays its own fees. 

The mortgagee has no involvement in the property, reports/collects no income nor pays any expenses.

I like better rewards on shorter timeline, that said, i believe your best bet is outskirts in LA, a 2-3 hr drive to buy something and rent them off.