I ask because we only buy houses around the southern US (TX,OK,AR,TN) but we're curious to know if more opportunities to buy foreclosures could potentially exist in other markets. 

I am buying a duplex about 80k under what it will appraise for.

Interest on a loan used to buy or improve a rental property is ALWAYS deductible against that rental property.

Interest rate 3.8% In short this is how you do it...Find a flip opportunity, use hard money or what you got to buy, rehab it, re-finance it, boom.  

.: So in 25 years people that buy now will be glad.

@Cameron Porter half off of a $30-40K price may not be enough to make a purchase work.We've seen clients quickly get upside down with Land Bank purchases:(So, proceed with caution and hire a great inspector and contractor to go thru the property before you agree to buy it.

The biggest question you need to ask yourself is if you are doing this to afford a property you otherwise couldn’t afford or to save money period, that will lead to very different conclusions about where/if to buy. 

It sounds like you are trying to buy a second property with less of a downpayment than 20 percent.

Quote from @Nicole Laba: I work with investors in Chicago who are actively buying off-market properties, and Ive noticed that everyone has a different approach when it comes to sourcing deals.

We have 60 rentals12 air bb units, Ohio  and Fla. 15-20  flips and wholesales, between buy and sell close at any point.