And DC is a haven for young highly educated would-be first time home buyers.

Personally I’d stick with SFR or at 4 units or less for preferred financing and to reduce risk of the exchange failing.

What a willing buyer can afford to pay to a willing seller. 

Unless you have cash backing of your own to buy and a solid commercial buyer's list, these deals are unlikely to close.It doesn’t matter if I agree or disagree with the answer the responding poster provides.  

Most sellers will laugh when you ask them to reduce the price by 3% because you're not using a buyer's agent.....You can buy and sell your own  properties without a license anyway...  

there is tremendous demand for inventory by both investors and retail buyers which is making it tough for the casual investor to succeed.it's great that you're thinking about getting your financing in order. 

I think I would probably talk to an attorney tbh these business purpose non regulated loans do not have rate locks that have to be honored legally.. they can and do change them unilaterally.. borrower accepts counters or declines and loan fails. 

Above those two, scheduling and time blocking are usually where people are failing.

The buyer pool is beyond flakey..Your best bet is a local investor.

If you buy it too low, in some jurisdictions they will call it "equity skimming" which is illegal.It can be very profitable, I've done many, but you really need to know what you are doing. on pre foreclosures on the West coast if you happen to do them legally .. the old owner is due 80% of the profit if you sell within 36 months.. so there is that.. but if your buying pre foreclosure for long term hold and wait out the 36 months then your fine. the reality these days is post GFC lenders/ banks/ servicers have realize that working with the buyer to reinstate recast redo the loans is far better than taking it all the way to foreclosure so your correct its usually the worse houses that make it all the way to the end and go to sale.thats why if you follow NODs  Notice of defaults or whatever they are call in your state. you see so many postponements and or removed or paid off etc.. so you hone in on one property do all this work only to have it not go  to sale  rarely are you going to buy a home that you really want LOL