How do I go about finding those who'd rather just collect the insurance money then sell it off at a discount?  

You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

The withholding can also be stopped altogether, and only actual taxes owed will be collected by filing form MW506NRS at least 21 days prior to settlement and filing it with the Comptroller of Marylands office to get the exact actual tax owed calculated. 

He is trying to collect all the hurting students for his new investment company.Tyler Deveraux and Ryan Woolley are both starting new companies.

Syndicators do this because most passive investors are not sophisticated enough to realize the "security" of the preferred return means they usually are giving up the potential for massive returns if the deal does well.This next comment would apply for all syndication.  

It offers a lot more than just rent collection.

It also requires gaining a level of sophistication and knowledge that not everyone has the time, inclination or ability to do.

Assign a contract: This is where you get a property under contract and you "fee" that you collect at closing is for giving the end buyer the rights to execute on the contract.

Otherwise, I would sit on that property collect the cash flow and seek out great opporunities.