This is definitely making me rethink if it's a worthwhile gamble (especially considering the owner that is bey foreclosed on is supposedly a lawyer).

Of course, you could also gamble that the tenant won't show up in court and you get a default judgment.

There are others that continue to gamble with floating rate debt.  

Those in earthquake zones who INTENTIONALLY don't have the readily offered coverages for such, ARE THEIVES by NOT insuring with expectation of DEFRAUDING the rest of us to pay for there gamble. 

It’s a gamble, but just looking for ideas from more seasoned real estate minds.

Each property's characteristics match the housing requirements of only a single tenant segment.

In my opinion investors buy properties with break even or negative cash flow and hope for large appreciation are taking a gamble.

As for SFR a pre approval letter is of value because most institutional lenders will close the loan with the main qualification being the buyer himself, as long as the property appraises for a certain value.Loans secured by commercial real estate are much more dependent on the property itself and all its characteristics, not just the appraised value.  

Unfortunately, If there are no other verifiable facts to support a better value, than it is usually futile to appeal based on opinion and/or interpretable characteristics alone (i.e. the Subject is in superior condition to this comp and therefore, it should be valued higher, etc.).

Gambling addiction,drug addiction, seems familiar.