Is this something that a real estate investor would find attractive to get the property before it goes to auction?

Less buyers are attracted to these properties for a reason and they are priced accordingly.

It really depends on the neighborhood, the type of tenants you have (and can attract) and what the financials look like on whether this situation was worth it ten years from now or not. 

So, choosing properties that attract reliable tenants is the critical success factor.

It was an attractive building but there were not any photos of the inside.

It's definitely a lower income area, and will not attract renter's for Mid-term or short-term rentals.

You are more likely to attract better tenants. 

If you do a  search of this forum you will find that financing properties in CR is an issue, though the nature there and lifestyle is very attractive

For MTR, I'd go 2 BR...nurses like to travel together.For VRBO or ABnB, either way could work....most vacationers don't stay in their rental anyway except to sleep.I've done both, had a small house with 2 BRs and never had a complaint.

The longer the market stays bullish the more  investors it is going to attract, especially the less knowledgeable investors and those that haven't been vested in a full market cycle;  this demand drives margins down.