Of course they are going to have bad credit or they would be looking in a better area.Another thing you may want to consider to drive more applications is to not charge the application fee.

This will still qualify for a residential mortgage and you have a better shot of completely offsetting your entire payment.

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

If you want better cash flow, 35805, 35810, 35816, and 35811 are likely the choices. 

From there, I would start to run numbers on those deals in that area/streets, and then start to connect with local agents/PMs to get an even better feel for pricing on homes along with rents for them. 

The better.

Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.My questions are:Is this too naively optimistic?

I would love to chat with someone who is a mortgage broker to understand your day to day workflows a little better.

Do you see them as a viable option early on, or is it better to avoid them altogether?  

., I believe the heart of Jaron's comment is: in general, you will not find much better deals at auction.