The deals there I have seen maybe net 2% terrible Miami's volatility will be high, just cause that's the nature of some markets.

I have not had that happen, but natural gas is a lot more reliable than power. 

The exact steps depend on the nature of the defaulted debts and on your local laws.State income tax planning.

You need to look at return on equity, how much cash flow can be generated putting your equity to work vs the cash flow this property will produce.

Value add ( do you want to do reno/raise rents), or stabilized (income producing, lower maintenance). 

Given the nature of small towns, we have personal relationships with multiple members of the board which we believe positions us well for success but of course there is still uncertainty.

I have a similar perspective, as I am right on your heels with the same decision, so I'm naturally inspired. 

The City of Montgomery is the Capital of Alabama with a robust economic environment that has produced multiple awards of excellence at the Chamber of Commerce level.

I can build a 1,000 sq ft cabin including land  and holding costs for about 350k or so and the cabin will appraise out for about 500k to 525k and will produce gross rents in year 2 between 50k to 60k.

As someone who deals and talks to real Private Lenders (small shops run by a guy who lends his own capital and doesn't use big box), they have a hard and fast business model that produces the rate of return they need to remain profitable and curb the risk on their cash.So the best product for a budding fix and flip investor is the bridge loan which includes acquisition money and construction money.