Ie, most residences have a no-business clause in the lease, yet most people nowadays perform some degree of their work nevertheless in the comfort of their home.

A third option would be buying a package deal of homes and having them managed.We currently own a 14 unit complex and 5 SFR in the area.

Foreclosure Auction buyers have to be cash buyers, you know they can make a decision fast and they will generally be willing to tell you exactly what they are looking for.A third option for finding cash buyers or where to do your deals is search for other investors in your local area and see where the deals are being done.

I think that having a partner you trust in a particular area can dramatically improve your performance, especially if you are not living there or don't even have the chance to see the area.I also think that it is very important before you find a partner to experience real estate on your own, so that you have a good knowledge of what investing means.

I'm a believer that real estate should be treated as any other asset class and decisions based on financial returns and performance rather than geographic proximity.

(email and fax via a third party online service)BTW: I miss the triangle. 

A third party came with her prospective roommate, said they qualified, but application process showed otherwise - no where near the income.

If due diligence is ending and you are undecided it's better to send a letter of termination then let a contingency pass and be in a bad situation having to perform on a contract. 

If your greatest concern is a potential downturn, you've already performed the wisest hedge - buying properties in high-demand locations.  ...and if/when things go south, you have a few levers besides price to keep your properties performing:Providing quality finishes to set you units apart (which you may be doing already, based on your remodel comment).  

Just make sure that the escrow/title company is a disinterested, neutral third party and has NO connection to the buyer or seller.