There are a ton of good approaches to building a Buyer's list, and you should implement multiple strategies. 

(There may be longer fixed-rate products, I'm just not aware of them yet.)One advantage of 5-units and up, is that the appraisal will place more weight on the Income Approach.  

After developing your "personal touch" and adding experience you'll be able to hone in on your desired approach.

Kim,The neighbor was approached by the bank before the house was put on the market, MLS, and they rejected his $80,000 offer.  

Introduce yourself and let them know that you were approached by someone trying to sell their house and you're interested in buying but you're suspicious that something isn't right about the situation.

I haven't  tried this approach yet as my first home was a primary residence before converting to a rental, but I have spent time cultivating a relationship with local lenders (and investors) for when I am ready for my next deal. 

I located a very decripit duplex in my area and I am searching County records to find the owner.The duplex is in an area with rapidly rising prices, and I am a newbee investor.What would you suggest as the best strategy to approach the owner to see if he will sell for a deeply discounted price? 

(The reason for wanting to take this approach was addressed in my initial question at the top of the page.)

@Anish Tolia, just out of curiosity how did you get approached to be a private lender. 

I really want to get started in the business but am unsure of the right approach/path.