My impression is their students have a decent beginner level understanding of how to market and ask general questions of potential note sellers.

If the investor's opening bid is the only bid, then that is the market speaking regarding the value of the house being no more than the liens.

Some investors may use different percentages based on their risk tolerance and market knowledge.

Quote from @Cesar Garcia: So I'm thinking of purchasing a house out of state since my hometown market doesn't make much sense to purchase in. 

I do not know if your area has any rules against this for SFR but what we have done in the past from a marketing POV is to only bill 75% of the cost so that the tenant feels that they are getting a better deal than individual meters.

@Jagan Reddy Welcome to the Memphis market!

If you come across off-market deals and we're still not connected, please shoot me a message.

Be aware that it is a hot market in PR (still hot) and sellers shy away from offers that are not all cash. 

Im a South Shore guy and the market here is nuts right now. 

You should always raise your rent if your market supports it.