I'm particularly interested in purchasing two-bedroom, one-bath (minimum) properties that offer space and potential for adding an extra bedroom and bathroom.

It appraises for $250k so the investor (after all you can’t sell to an owner occupant, the buyer who would pay more than the investor.) has to bring 20-25% of the $250k plus all of the $50k extra.

Renting for top dollar gets you less rent overall when the tenants turn over yearly and it takes you extra months to fill the vacancy!

Id say its very similar to working with non investor clients aside from a little extra work and baseline knowledge of investing / rehabs. 

@Ryan Delauz Good point on the extra fees...

My folks do Narragansett, RI and do great.

Networking with local landowners and attending real estate meet-ups or county auctions sometimes, folks prefer a direct sale to an investor over listing with an agent.

I could not get a straight answer from anybody at the City level, I got three different answers from three different folks within 10 minutes of each other via email.

If someone does the work to generate a meaningful question, I wish there was more respect given to those folks. 

So yes, I have seen folks sell a property as a business.