Markets depict appreciation and rent growth into market price.  

Is the market too oversaturated?

Not only will it have a negative effect on landlords, I would imagine some owners of single family homes will choose to sell to an owner-buyer, thus reducing the number of rental properties on the market, making it more difficult for renters to find places to rent.

Off Market through a broker.

Study the market.

@Javian Moorman Plenty of CHA appliants out there...you just need to market to them on the open market like you would any rental and they will come. 

When I talked to RTR, they told me it’s the same market.

Each market/location varies on construction materials and labor costs plus comparable available existing properties to buy.3.)

How it goes from here is dependent on the market, how the deal is financed, the sponsor's plan to patch things up, and the skill/ability of the sponsor.If you have some time, check out this forum thread, it has 279 responses as of today:  https://www.biggerpockets.com/forums/960/topics/1185204-ashc...I think you'll find some useful input there. 

After coming from the Birmingham, AL market, I've learned that I really like to have a tight network of local investors who help shape how we're looking at properties.