Hi, pre foreclosure in all of its permutations, before the bank sends Notice of Default (NOD) or efter which is state even county dependant but often starts a 4 week clock till the trustee auction are the 2nd most difficult deal scenario and IMHO only experienced investors should bother, the 1st most difficult deal scenario are bidding at the court house steps on lord only knows what is being auctioned off sometimes even 2nd mortgages, you need to do so much home work to attempt to reduce your risk at the court house steps...Pre foreclosure no one talks about these issues, always about the nice sounding stuff like "motivated seller" get a good deal etc etc both are usually not the case.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

It's difficult to see how a tenant will be after screened and signing a lease.

They're not bad people, and they do want to spend their time with loyal clients. 

The only think I hear about hers is it is difficult to have work performed on it by a contractor.

Quote from @Collin Hays: From a macro standpoint, cash flow is difficult when servicing debt, at least in the early years. 

I have not yet but I am planning to look into it for a client in the near future.

Our agents handle acquisitions and dispositions for our flips, but they also help clients find their dream homes—and that’s where our design and contractor teams come in.

Quote from @Joel Oh: Your business must make money day 1.It is so much more difficult to fix the model that is not making money than starting a new business that makes money day 1. 

It is not very difficult or complicated to evaluate commercial real estate, there are plenty of good books available that can teach you how, textbooks, online courses, community college classes, even excellent youtube videos etc, and it is actually quite enjoyable in the process to learn.

Is it more difficult to get a loan on a rental property?