When it comes to buying SFR at a discount in a red hot sellers market, what are some lead generation tactics most investors just aren't willing to do - either it's a ton of work or expensive.

The time zones of where I am in relation to you two are pretty flipped.

I month of vacancy and you're in the red for the year. 1 or 2 things go wrong (HVAC, roof leak, who knows) and you could be in a world of hurt.Breaking even in the duplex might just work as a house hack.  

Say I have plans drawn up after verifying zoning and permits ect; a builder quotes me at say...$1.2 mil. and rents average $800 per unit. 

I confirmed it's zoned RSA5 and found the zoning documents online.

However, my real question has to do with a couple of red flags that we are seeing that may just be standard procedure for the hedge fund that owns the property.

This is a serious red flag: "Every expense gets billed to the owner, incl. clogged sink drains and complaint about a "busted" garbage disposal that actually doesn't exist." 3 different people will give you 7 different ways to react.

I am so thankful I didn't score a great job...Moral of the story... bet on yourself and put yourself in situations that take you out of your comfort zone and force you to grow.

So you must go through a bunch of red tape.

I was a bit lax on this one as we own 2 other houses in a a 3 block radius of this one, including the one next door and had no problems with the others - folks in that area tend to take good care of their homes.Lots of little red flags on this property though - they were stealing electricity using jumper cables (who does that?)