this might require a discount over selling them as individuals. 

In addition, I think you are assuming a general contractor will extend credit to a borrower which isn't' always the case. in columbus we build and make everyone self fund a 30k retainer account in a escrow that they have control over because we build new construction multifamily at a discount and won't extend credit to anyone 

Never even asked for the discount. 

That means they can get a 50% discount on the winning bid.If that's the case, they a) knew they'd kill the competition by smashing it to $200,000 and b) know they weren't going to pay any more than $100,000 for the house. 

Because I have an LLC, I have a B2B account with them and get a 20% discount making things a bit more affordable.  

What sort of discount (dollars and percent) are you getting for the squatter properties?

When chatting with an insurance representative, inquire about policy limits, deductibles, covered events, guest screening discounts, and the claims procedure.

Inheriting squatters is a PIA, but because of that you should be able to get the property at a discount.

So you will end up with a rookie that will do it for cheap and cause you to lose your EMD or a discount shop that will barely answer your phone call. 

I think getting my ducks (management/ financing) in a row and seeking out a discounted MF deal makes a lot of sense.