He gets lists of bank assets, which he claims is public information if the bank is FDIC and looks for houses on that list that are in his area.

You also have a diversification in industries providing jobs in the MSA although a majority still come from health-care, schools, government and transportation/distribution, agriculture and research just to name a few.Why does it matter?  

The IRS publications on this issue seem to be contradicting each other.

It's not well publicized but the limit of 3.5 can be expanded out if you're able to demonstrate that you're able to save more every month.You're best bet is to find someone you trust a lot and to buy a house/apartment with them, if there's extra rooms you can rent them under the 'rent a room scheme' which can give you €14,000 a year tax free which should more than cover the mortgage and allow you to save up a bigger deposit quicker for an investment property.Hope I've helped somewhat!

I highly recommend taking a look at IRS Publication 527 for info on cost basis and everything else related to taxes on your rental. 

just don't like the tax burden or the health care system.

I can only speak for myself personally but I don't publicly advertise my phone number or contact information anywhere as I simply don't see a need and/or benefit of doing so.

You'll have to file Form 4562 with your tax return.Check out "Conventions" on page 9 of IRS Publication 527: Residential Rental Property for info about the mid month convention.

Anyone aware of any recent publicity or news articles discussing significant positive redevelopment in the Napier/Hermitage area?

Amenities means public transportation availability, parks, school reputation, and shopping centers could get you more rent and sales price.Another thing that could effect rent and sells price is the neighberhood it's in.