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.

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. 

They are great as appreciation plays but that's not what most investors are looking for.C/C+ is where you're going to cash flow...

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. 

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

I think the bottom line is that he played fast and loose with our money.