The only reason it is structured as unsecured is if 1) the borrower's net worth is substantial and it's basically a credit card or 2) collateralize funds cannot be secured for a specific reason (such as high volume inventory purchase/sales) but the ave balance stays constant.

Generally houses are sold for market value as determined by comparable sales not net operating income.  

I went to one of the free guru seminars,  signed up on BP and my local REIclub, I'm starting the 75 hour course to become a licensed real estate sales person and  Ive been reading through the forums and posts here on BP as well as well as webinars etc.

When attempting to purchase a pre-approved short sale, is it possible to negotiate a lower purchase price? 

Would it become more of a standard residential sale at that point? 

Multi family (small or large), SFRThe six plexes you are describing due come available some times for sale  (especially New Britain or Bridgeport), but you need to know the area to avoid the wrong side of town.

Another avenue you might want to consider is tax deed land sales that start coming up toward the end of the year.

If the note went into default The investor had the option to get their original funds back or keep the money in the deal for a percentage split of any fees from a foreclosure sale.

It's easier to sell many small priced homes rather than hope for the one big sale.  

I have seen worse, and even been involved unfortunate in worse from the sales perspective.