My understanding and experience is that the foreclosed homeowner would owe the bank's bid amount to redeem.

What you're looking for is perfect for a homeowner or someone that wants to live there, but all those extra amenities (doorman, etc) are too costly for you to make any profit. 

Will it have some impact - I am sure it will but it will have its ebbs and flows and settle into a spot that probably impacts homeowners more than investorsJust my 2 cents

In a light cosmetic flip, what are the advantages of purchasing builders risk insurance over using a traditional homeowners insurance policy? 

I have seen thousands of home owners over the years get stuck with an I/O Heloc and cannot refinance it due to lack of pay down and not enough equity/appreciation.You still have a 30 year mortgage at low 6% versus a Heloc in todays market at over 8-10% over a shorter term 10, 15, or 20 but never 30 yeas so in most cases the mortgage payment is less. 

As @Susan Maneck mentioned instead of Sec 8 for landlords section 8 needs to take those same dollars and turn those same folks into home owners..

It takes a lot of effort to nuild buyer lists and market your services to homeowners.

Many houses in Trinidad were built by inexperienced homeowners where you may find lots of hidden repairs.

A 1' x 3' hole is no more work to fix than a 6"x6" one.These are the sort of repairs that will scare off homeowners and let you drive a good bargain.

Avoid anything with condo association fees or homeowner association fees as they DECREASE CASH FLOW with no real contribution to the bottom line.Lastly, since you are new, when you do get a property DO NOT HIRE A PROPERTY MANAGER.