Not my favorite area for crime / unemployment / not so landlord friendly courts but still some great deals to be had and as long as you go in eyes open the negatives are balanced out with the increased return.

The bigger issue with tax sales is that you may find it hard to get clear title until 1 year has passed as most title companies don't want to issue a policy until the homeowners right to appeal has expired (in CA there is no right to redeem, but they do have the right to challenge the validity of the sale).

Also, some state, including PA and MA require the accounts are open local and/or in interested bearing accounts.If you were in MA and didn't follow this law (and all its other requirements), the tenant can sue you for treble damages......so if you accepted $1200 that would be $3600 you would owe the tenant by court order!

Fortunately, I am now in a financial position, which affords me the opportunity to attempt to direct mail specific targeted area/homes, out of state heirs, divorces, etc and would like some detailed feedback and commentary about certain specific steps of the process, and not just the general process as whole.I plan on attempting to send yellow letters, professional letters, postcards, and also follow up letters to owners in my target area, and specific homes that I see when driving around that look like they would be appealing to me.

Also, is it possible to appeal zoning restrictions (ie in case this property isn't zoned to allow a three flat), and how might one go about filing an appeal?

You want to appeal to their emotions.  

Through my research though, investing in a single family or multi-family home has become more appealing.

I always recommend to my buyers, anytime you go back you are hitting the ball back in their court and they can walk away.

The court house steps has been tough cause Brian's guys are always there and his Praxis Realty listings are everywhere.

There are definitely small multi's that need work in the Signal Hill area, I'd go for those to try your high end finishes appeal.