As it is when money is at play.

I also understand accounting and legality may play a role.

Other wise they would have bought it at the auction and would have told you they owned them so you would not waste your time and money bidding.. that's the other play these redemption buyers play.

The property cash flows and I could definitely see each investor making at least $1000/mo with the most hands-off approach of renting to an operator and much more if a person ran it as STR or LTR and it is a great diversification play for me as Costa Rica should see much better appreciation than the Midwest, but if I were to cash out I could see five times the cash flow because of the power of leverage.But I think you hit the nail on the head in saying that it is a lifestyle type of investment.  

If this is your first investment and your first property, the quickest way to fail is to create an uneven playing field.

I also have one neighborhood that I am hoping to purchase an SFH as an appreciation play.

But she takes excellent care of them (even put in a small concrete pool for them to play in during the summer:-).

Cities don't play fair when they decide to go after you.One thing I would also suggest you do is look on AirBnB for the specific building you want to buy in. 

And the reason why your "tale of two halves" will play out as you described.Demand:  This has actually been high almost all along, but rent growth hasn't materialized in response due to high levels of new supply. 

the one that broke even was a fix and flip play that the fix happened but the flip did not work.