Something to look into, nonetheless not enough info to give you a concrete response. 

I typically only run numbers based on concrete things that I know of right now.

Some of them being: that they purchased the property very long time ago and don't need a massive amount of income to cash flow, they are fearful of raising rents and having a vacancy, or they just don't wanna deal with it anymore.Either way, this is where the opportunity lies for the new Investor.

If you can get a 4 unit and a basement, that would be ideal and create major cash flow and equity creation, plus you can not worry about a property manager and boost your yield.You can get a whole bunch of cheap debt which your tenants will pay down over time, massive appreciation and potential cash flow if you buy right. 

They were faced with massive foreclosures on properties that were worth less than the cost of the foreclosure process.

Growing massively! 

The business is already challenging, and with goats moving the goal posts, it becomes even more difficult.Then they wonder why there is massive migration to the south and sunbelt.

Below are estimates of the housing shortage by different institutions:The National Association of Home Builders (NAHB) estimates a shortage of 1.5 million units (2021 data).Freddie Mac’s estimate is a 3.8 million unit shortfall (Q2 2020 data).A report commissioned by the National Association of Realtors (NAR) (2021 - Rosen Consulting Group) suggests a 5.5 million unit housing shortage.No matter which data source you choose, there is a massive shortage.

I tried that market a few years back and price to revenue lacked, massively and it still does.

Appreciation is likely on the low side for the coming years (with a massive inventory shortage across the nation).