Hi Kabene, What price points would you be targeting on these properties?  

Would you be targeting a single family home or a multi-family property. 

FOUR LEGAL STRATEGIES TO BUYING PROPERTIES WITH UNDERPERFORMING TENANTS AND MAKING IT A MORE LUCRATIVE INVESTMENT PROPERTY Many investors have encountered the following scenario: after a long search for the right property in the target neighborhoods, you finally find it – but the property has tenant(s) that are either in default or on leases that are well below market, making the investment less attractive.

Yes, sometimes it isn't perfect, but no one is a targeted victim.

It would depend on how high of a sales price you are targeting.  

There are strong, recent comps on which to base the target sale price. 

If you want a better return I suggest a targeting properties that need more work, invest in lower cost areas, or a combination of both.

Single family units are more than plentiful in this area so that was my target, however,  since our recent encounters with multiple hurricanes, insurance makes it near impossible to even remotely turn a profit as a landlord.  

I actually wrote an Excel macro to pull down the HUD properties every day in my target counties, then check the bidding results .  

Don't be penny wise and pound foolish.