I'd recommend markets where you can find cash flowing properties, population & economic growth that will lead to long term appreciation. 

see link http://www.dupageco.org/Recorder/3392/You can search personally or online.

Other option, be a person of solution on where they are going next, help them find a place rental etc., or get them lined up with a residence in and pay for it for the first month. 

I have personally been raked over the coals on some south side properties with squatters because I wasn't prepared for the time it would take to stabalize the building.

Consider factors like job growth, population growth, and rental demand.

When I've met the dog in person, it's very calm and nice; it just seems to bark a lot when its owner is not home.

Would I be able to deduct depreciation against my personal w2 income without having rental income for the year? 

There is a lot of potential for growth.

Do I just simply say, "I want to buy your house if interested" and keep it general or make it more personalized, "foreclosures are tough, I would like to help." 

I to,d him if he thought selling Cutco knives was challenging, imagine trying to sell a person on investing $50k or more with a sponsor that has yet to perform in this RE market (regardless if the value add is smart and likely to do well).