Does it have priority on the sale and any subsequent distributions?  

If a bubble does form and subsequently collapse I would bet that it will be the new investors and homeowners that get hurt and not the hedge funds.

I have found myself in a predicament with the current market and subsequently I am interested in long-term real estate investment.

Any subsequent lien-holders, as you mentioned, are wiped out and have no claim and cannot foreclose.Is that about accurate @Wanye?

We have subsequently bought more personal and pure rentals. 

I know that a duplex is more likely to have more frequent turnovers, and the subsequent leasing fee of 1 months rent (I have decided to use a PM that charges these fees), and the associated repair fees before a new tenant moves in.

That's why when the borrowing costs get really high for them and the businesses can no longer absorb the inflation in the name of higher wages you have a downturn.More investor owner areas will likely crater as the wave of foreclosures start happening with regular homeowners there and also the investors who own maybe 1 or 2 properties who extended themselves financially to start their investing journey.

I've found that if I don't get good vibes from someone it's usually because of something that is subsequently uncovered during the screening process.  

S, broker-in-charge of a sole proprietorship, listed a foreclosure property, the sale of which would earn a selling agent a bonus of $1,800 plus full commission, and subsequently presented an offer to purchase to the seller from buyers whom she had represented in approximately five or six previous transactions, listing herself as seller sub-agent on the contract.

That subsequently KILLED my confidence in the beginning.