That would suppress demand for new homes, but rentals will still be strong.

HIgh violent crime and/or lots of blighted homesBrightwood-MartindaleAnywhere near N Sherman Dr, N Shadeland Ave, or N Post RdState Fair Grounds areaHaughvilleRiverside / Near NW Side / King Commons42nd St between Post and MitthoeferMars Hill - suppressed property values from flood zones and RR TracksRavenswood - suppressed property values from flood zonesSouth of Rhodius Park Area (very industrial feel)Other places worth checking outBeech GroveSpeedway (good luck finding a good price here)Southport/HomecroftWanamakerThings to take note of:CrimeFlood zonesRailroad tracksUnderstanding the school systems and district boundaries.

It seems margins are so suppressed, there is no way they are getting a much better price than at Home Depot or Lowe’s.Thoughts?

But they still have that doctor's appetite, doctors like nice things (like a really nice house in a good location), that's why they became a doctor, often they are unwilling to compromise on that.

for me personally I would just put it in my business.. new builds  in hot markets while it lasts  short term  deals while flipping is still going and this insane appetite for rentals keeps going.Pretty much exactly what Bruce Norris is doing  !!!

Why would a company that has "no appetite" for investment drag potential customers through application and appraisal expenses while not intending to invest?

I received this recommendation from an insurance company for a set of properties the management company I work for helps take care of.This is a device that hangs over a vent hood and has sort of a fuse that a stove top fire will set off to drop fire suppressant and protect both your property and people inside.  

I identified three different categories of investors - (1) Investors with no capital or desire to invest in multifamily/real estate (2) Working professionals (doctors, lawyers, techies) with an appetite to invest and working capital but do not have real estate expertise (3) Deal makers/Investors who want control - Either those who are actively putting deals together and operate in the general partnership or investors who want control and active management of the day to day decisions regarding the asset and investment strategy. 

There are new rental buildings all around this part of the city, which I believe is suppressing rental rates, and this is why I want to try something new with the corporate rental. 

I'd see it as a question of appetite for risk.