I know 3 and 4 bedrooms are the bread and butter but why not go down to 2 bedrooms at the 50% to 100% value.  

It seems they are taking advantage of markets where there is a shortage of bread and butter rentals, or in markets where the location is a major driver of prices like major metros and cities.Despite its obvious depature from the real world, I find myself watching the show anyway.

I dispute your characterization of the properties as highly illiquid: while true liquidation is difficult in a downturn, there are products that offer synthetic liquidity, such as cash-out refinancing and HELOCs, as well as collateralized loans against the portfolio, once it reaches a certain size.

Inside the building look for the tell-tale weeping bubbles on the pipes.If you are going to be digging to the curb and replacing supply, the incremental for replacing waste will be small compared to returning in 3-5 (maybe 10 if you fortunate) years to dig again.Sometimes, if the pipe to the curb is not too bad, you can insert a sleeve through it ... basically put a synthetic pipe inside the cast iron.

I still make offers (here and there) on MLS properties, but my bread and butter is off market.

If someone is a very successful investor why would he change up his bread and butter towards coaching ?

It's a pretty good market for rent-to-price ratios (there's tons of properties that pass the 1% rule), and most areas fall under what people could consider their "bread and butter" zone, B and C class properties that offer good cash flow and a decent chance at appreciation.

My bread and butter is NJ but I have successfully bought and sold in NY, FLA, Detroit, and Minnesota as well.  

I am starting from scratch basically and my bread and butter biz is closed/ safer at home style.

It may not be the career you want, but it will put the bread and butter on the table.