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.

So on and so forth..only turn key investments until I am quite skilled. has anyone every taken this investment approach.

This weeds out most of the retail buyers and also indentifies if they are somewhat motivated.I use a "local" analytic tracking number and the calls are recorded and forwarded to a voicemail I have set up for this.

Learn about birdogging, you could approach landlords about small maintainence jobs, yard work, rental cleanouts, etc.