State and federal laws have been created just for this......sometimes referred to as rent skimming.....getting someone to QCD their house over to you with No intention of paying their mtg payments......stay far away from this. 

I'm aware that people privately lend to other people and investors all the time, but I'm asking more in the context of the legality of making an effort to seek out investors and loan to them. 

Remember that markets can stay irrational for a very very long time.

The neighborhood is quiet, not affluent and not a war zone and base on my research, comparable rental properties are between $1,300 and $1,500.

I saw a listing for a 2 bed/2 bath room in a ski lodge that we have stayed at before. 

Also, definitely stay away from websites zillow and Icomps for comps- those sites can be up to 70% off on their numbers.Now I don't know the specifics of your deal like beds/baths, lot size, etc, but looking at comps within a .1 of the area, I would guess you'd be in the upper 300k range.

But, we do not plan on staying in our current house forever so that doesn't seem like too much weight should be put into that.

And I definitely want to stay on budget. 

The agent doesn't have anything to lose if you buy a property with large capital repairs you weren't aware of.

Not aware of any closer that aren't listed.Have you been to a meeting?