I considered one exit strategy if this doesn’t work after a couple years, which would involve selling fractional shares of the unit while keeping half of them myself in hopes, the sale of the fractional shares would offset the existing mortgage and maybe put us in a winning position.

There's a ton of competition for real estate and it's crucial to make the most of every chance you get to connect with your audience. 

I know I'm going to have to pay up a bit for that, and if I don't, there are enough other investors and investor groups out there that I'll likely not be competitive in any of my offers.

If property is not redeemed I get a deed in the mail.REally like this play for assets that are inexpensive.. and your paying cash.. risk is minimal to nill and as long as your play is simply rent and keep very long term.. its a genius move.. most folks are so worried that you have little to no competition..  !!!! 

My original plan was to purchase a multi-family but it will be very challenging for me to find one in my price-point with all the competition in my area.

Keep in mind to be competitive in most markets today with HML when your up against Lima one or Kiavi a default is generally not going to make you money its going to cost you money.

This seems like a lower competition market to start in, anyone have success they cna speka on?

Our PM vacancies are at 5% or below at any given moment and that is due to renting the properties a little bit below competition and the “fair market” rent.

If they're using a PM they are NOT competition.

But you'd have to really dig into your market data to decide if its truly a competitive advantage.