It seems like an easy fix, look for a roofing supplier, visit their store and ask for their contractor calling card, some mom and pop usually leave some.

Drug dealers would leave asap if that happens. 

Value can be bringing them a property no one has access to (no competition) and one that leaves enough meat on the bones for the investor to make a profit.

Your 3.5% down payment would be $4900 plus the 1.75% mortgage insurance would be $2450, which leaves $2,450 for all the other costs, which does not sound unreasonable.  

Awful house in decent neighborhood here in So Cal.I have a commitment from a hard money lender that leaves me $65000 short.

Of the two that you have listed I would personally go with the I buy houses approach because it says exactly what you are doing and leaves less confusion on a sellers part.

The low prices you will see are not in areas you'll feel safe or want to leave your car unlocked.  

I have had the most luck from driving street by street and noting every house that looks abandoned and then either running the title or leaving a note one the door (and then running the title later if I haven't gotten a reply from the note).Takes more work and a lot longer than just going on listsource but us Canadians have to make due with what we have :p

Don't wait for them to leave and don't try handling it on your own.

There's something about DC that I love, and I'd love to one day settle here.Right now, though, I'm only here for another few years so I'm looking for a place to be able to rent out after I leave.