There have been numerous people on BP talking about how they paid application fees but they could never get their loans closed on any deal brought to the company.

The people who sell them! 

Is this how most people do it? 

But I find that most people want to invest in areas that are solid and that don't have bad tenant quality.

Ton's of people with golden shackles of sub 3% rates, epic net shortage, skilled labor shortage, on and on. 

In my experience, most properties that go to auction end up overpriced so I'd be prepared to attend a LOT in order to get something that worked on paper.When I attended my first market auction with an experienced agent the advice he gave me was to figure out my maximum beforehand and stick to it (Seems obvious but people get caught up in winning).

It sounds like you might be in the situation I'm in: buying a vacation home that I plan to use as a STR when I'm not using it so that other people can help pay my mortgage.

But I guess to answer your question, I find people who are going to foreclosure.

Also, I have undefined misgivings about two people co-signing a mortgage.

Like most people have noted, Costco and Amazon are the best places to go.