In my area, the market is saturated with homes from the 80s and 90s making it very difficult to find a good deal on anything newer. 

When the adjuster went in he said it was the worst he had seen in his 12 years. and I got a big fat check..

I found a 12 unit that I am interested in, but am unsure about running it myself, so I contacted 5 local firms by email, 2 of the big local names included...only one response, and it turns out he's a BP member.Lotsa fat wallets out there...RE must be the place to be, there's so much money coming in that there's no need to answer emails or call anyone back...hmph...

I'm in escrow on a REO that initially requested (and received) Cash Offers onlyDeal directly with the Listing AgentPut a fat deposit downBeat the Cash Offer by a meaningful amountBe willing to release Financing/Inspection contingencies on a short time-frameBe ready with proof of funds, credit, pre-approvals etcWork with a lender who you know can performSay on top of third party timelines (ordering an appraisal, Prelim, getting loan approval, etc)

The short term market here is saturated and long term rentals are sitting on the market...there is just such a huge number of rentals on the market for what we are used to. 

It will be their first home purchase and they're fully financed, I may end up purchasing some units in that area as well as the LA market is saturated...

Like you mentioned, prices are high here right now for good ROI, and on top of that the market is pretty saturated for rentals at the moment, so it's those unique/renovated/thoughtfully designed properties that offer extra character and charm that keep higher occupancy levels and offer a (somewhat better) ROI.

I’m not operating in any market that’s over saturated or doesn’t have a long history of a strong rental market.

so correction/stablization good thing.. big ole fat crash I dont see it. and if prices start to drop investors will stop the loss much quicker than what happened in 08 to 2011 is my thought ???

If the market gets over saturated with new landlords (thanks to BP) and we end up with large rent drops.