If you do, perhaps there's something in another market similar but at a lower price point.

They were worried that our development is going to lower the value of their home- and it absolutely will- no one will pay a premium for a small, old home that butts up to a big apartment building. 

This likely will result in a lower unit value than if value was derived from comps (especially seeing commercial MF values have fallen in recent times).Good luck

We have made money buying properety based on cash flow (lower priced) rented out for a period, then selling to an owner occupant. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

House gets foreclosed on when a borrower is not paying its debt obligations - typically its mortgage.buying foreclosures is not for the faint of heart as you have no idea of the interior of these properties lastly while it can be beneficial also realize if there are a lot in an area those homes are the new comps when trying to sell so it lowers home values in an area 

Will you get a lower rate waiting? 

In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).

The window guideline also has a height restrictions, homes built hillside with a room on the lower level are not always considered bedrooms because if the window is too small for a fireman to get in , in case of a fire it doesn't comply with the guidelines.

Otherwise, I'd say watch those areas closer to Micron understanding the barrier to entry will be significantly higher in exchange for the lower risk.