Depending on the answer, you may need to consider an extra risk factor involved with homes being foreclosed on and potentially pulled out of the park.  

For what I consider an investor IE one that buys investment grade real estate with after tax money they have earned usually in another profession.. this is more akin to learned knowledge you don't need a magnanimous personality to buy at auction or from RE brokers you work with..

@Gregory Pugh Does that mean you won't consider an area if buying at 70% of retail prices doesn't allow for a profit when estimating expenses at 50-60% of monthly rent?

You might consider an entry level job in property management the good companies will provide training. 

Consider an entry level property management job the good companies will train you. 

Simple landlord liability insurance will do, and you might considerAn Umbrella policyErrors and Omissions insuranceif you wish to be conservative.An entity (LLC, LLP, S-corp or C-corp) can still be broken by careless procedures (like personal funds taken from entity accounts).Heck,  getting a non-recourse loan is a good first step to protect your personal assests (that's a purchase money note and NEVER refi; you lose the non-recourse).

Thank you @Louis Simmons Jr.Thank you@Javier MarchenaI will talk to permit office and ask, and consider an inspection and speak to the lawyer to write a notice.

Given that, it's completely unreasonable to expect that they're going to accept (or, honestly, even consider) an offer significantly below list price. 

We will definitely consider an umbrella policy and explore doing an LLC!

BTW the uniform borrower assistants form is used on government backed loans, so that tells me they are not going to consider an accepted short sale offer between you and the Seller without putting it on the open market(MLS with a licensed Agent).