Properties with significant equity and have a mortgage on it the mortgage company typically pays it so they do not get wiped out.

For sure you MUST start with a market analysis, to read the market demand, and if there is an opportunity to gain market share or if your trying to jump into a crowded field against established "beast's" of PMc.     

Especially if you're new, there's a lot of knowledge to be gained.

If you are talking cash on cash returns that is a 90th percentile return, and may mean you are hunting for deals that offer high upside but also have much more risk or speculation that a typical deal.  

This is a great place to gain knowledge. 

But typically these are already home owners so it may be a better than average tenant base as far thrashing the property. 

While this website is dedicated to real estate- if you get deals off market etc it’s ok but traditional on market real estate - most will end up losing $ on these deals or it will take 5+ years to see gains.

In my experience, your typical real estate agent will probably know about most properties 8 units and less, because they are almost always listed on MLS.  

My guess is that the group is newer and they're trying to expand, which is why the price is so cheap.This sounds like a mastermind, which typically are going for well over $15k/year. 

You won't typically get to choose your appraiser if you're getting a hard money loan so that's not unusual.