My question is what would be an effective alternative real estate strategy to obtain this properties with little money down?

How will this effect us homeowners and investors?

It's much more effective for any lead to build rapport.Hope this helps Jon

But I would argue that especially if you follow the BP LEADS  funnel approach, you're going to be looking and vetting a ton of deals before you find a diamond in the rough and engaging a realtor for 100 deals before one is purchased. 

The purchase price does not directly effect the assessed value unless the assessors office takes it into consideration.  

Is there another option that is more cost effective?  

You haven't yet heard from a local, so thought I would chime in.As a tenant there are free legal advice places he can engage in, but really the message is that he needs to read what he's signing and ask more questions before signing.  

Step two is learn your state landlord tenant regulations and engage a lawyer if you are not comfortable proceeding with a eviction should it become necessary.Welcolme to the world of being a landlord (maybe).

Is this a wood structure, metal structure or masonry structure; as this effects the level of design work needed. 

I don't know the laws about a deposit limits...that's why we hired and pay a property manager :) The pm is a licensed Realtor and actually the broker/ owner of a local company and manages several other properties.I've gotten some new info about the situation and no longer  think he may be trying to keep the deposit from us....it really never was collected (there are emails between pm and tenants to this effect).HOWEVER we were never notified about this.