For example, when most of my development clients started building their portfolios, they picked up properties in areas where at least 1 of 3 things was almost always present: 1) They currently or have previously lived in the area, 2) they have family or friends that attend religious services in the area, or 3) they regularly visit family or friends that live in the area.

In terms of getting priced out here, what kind of house hacking strategies have you looked into?

These are kind investor that he is chasing forit is very easy to understand why this guy is falling  lol

There are very few Qualified Intermediaries with any kind of regulatory oversight. 

They are sponsoring for the Non Recourse and it's up to the student to pull money from where ever they can pull it from, usually some kind of private lender 

When we did it, we did score some great deals, but what we found was that we were visiting so many properties to understand our "strike price" (the maximimum we would pay for the property when taking into account rehab costs, hold times, interest on any debt, closing costs, real estate commissions, a contingency reserve for "unexpecteds", etc) that the math started to not make as much sense.

Well, without any kind of significant cash on their end there is going to be a much higher chance of default.

What kind of business are they running where they "need" money to buy materials? 

In the trenches no BS kind of guy.

Kind of surprised that BP has gone this long without getting things figured out and in compliance with the App store.