Here's my description of A, B, C, D and F areas:2.

They will merge or get bought out by big players based elsewhere.The easier money makers in internet commerce has already been made.

This is how the bigger players are making millions.

I think 2% or even 1% rule is nearly impossible to attain in California in most neighborhoods and especially not in this current climate.Short of obtaining off-market deals (wholesaling) in the cheapest markets in C/D/F neighborhoods, you cannot cash flow in this mark in the SF bay area.  

Buying leads from listsource, agentpro247, or any of the other big players is a *quick* way to get started.

I recommend setting up a keyword alert for "Turnkey" & "Pittsburgh" you will quickly see who the major players are.

I would keep an eye on the MLS and your other sites and I would move on.Spend your time on an actual deal where the players are known.

Join your local real estate association and find out the players in your area.

Especially anyone wondering about the "magic formula" of working short sales:http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1153419-Brian

Eventually what it would look like is I am finding investors that are sitting on their money either in cd's or low interest rate investments like, micro loans.