If you do find something approaching the 1% rule, it very likely could be a D-class neighborhood.

However, these investors have experience and knowledge in their market and most importantly are NOT using the "no money" approach because they can't afford to put down  money for a traditional down payment.

That would leave us with around $70k liquid cash.We rent an apartment month-to-month until we find a good duplex to purchase (ideally within 1 year).We house-hack the duplex until we accumulate enough cash to buy a SFH for ourselves (3-5 years).We retain ownership of the duplex and rent out both units.In my mind, this approach could "get the ball rolling", considering we can't afford to buy an investment property with our current circumstances, nor would we be able to for many years.What would you do if you were in the same boat?

Getting a Collection Guarantee When you’re underwriting a deal and you approach it conservatively, you take into consideration that rent collections may drop in the next 6 to 12 months.

@Joe Jor great points on the buy-and-hold approach. 

Also what is the best way to approach listing appointments?

I’m a realtor out in Erie pa, I’m wondering if there’s any agents who prospect distressed owners and if so, what’s your best approach ?

Of course, there will come a time during the process in which it might come up and at that time you can take the time to explain the situation to the seller, but hopefully you have already built up enough rapport with the seller and the deal is already approaching the finish line, so it won't be an issue. 

Most big analytics firms are now projecting an increase in home prices next year, so I'm probably wrong in my prognostications.

Liability protection should always be a multi-tiered approach.