In many cases, it weakens the lender's position as they did not underwrite the buyer and an owner-occupant tends to pay better than non-owner-occupants.

Numerous times I have been able to think through an issues that arose on a construction site and saved the Owner by proposing an alternate route to resolve it. 

Most of these forms are boiler plate, just changing owners name and address, and charging you several hundred for it. 

My experience has been that although I outline the requirements for tenancy in my properties, both brokers and PMs still send people who would qualify for most property owners but do not meet my outlined criteria; and then are SHOCKED when I reject them.  

When relying on LIHTC to make the deal pencil, yes developers wait BUT only if they have the resources to wait and only if the property owner is willing to not close on the property until the project is fully funded.

You are competing against other owners who have a much lower basis and/or debt cost to cover. 

Would love to hear form some Multi-Family owners/operators in these markets about pros/cons and specifically neighborhoods to avoid.My wife and I have been to Columbia SC many times and, while we have never been to Little Rock Arkansas, we plan on going in Late March! 

The only time we will not make an offer site unseen is if we run into a situation where an owner or a realtor won't accept site unseen offers. 

Summary;  95% of all pre forclosure owners refuse to even talk about selling inspite of the empending auction. 

If you have a partner and are a minority owner or LP in the deal, you may find something, but that doesnt sound to be the case from your description.