The banks have their own objectives which is have a loan portfolio that looks great on paper.

Depending on your objectives as an investor another market could serve you better.

Direct mail objectives can vary widely based on the part of the country that you are working in.

What are your objectives?

My object is to appreciate the second property, doing the floors, carpets, and most of the work myself.

Objective is to is to increase cash flow.

Then they buy the house, they pay to rehab it, etc.In scenario #1, you're paying a marked up value for a property, but it's already done for you.In scenario #2, you're paying cost for the property and rehab, but you do need to factor in extra time/risk for the rehab.So neither is inherently "bad" or "better", it's more about your goals and objectives.

I object to the income tax system.

Personally I would invest in Value Add Storage Properties but what you do will depend on your area of expertise, interest and as importantly your investment objectives. 

You are going to have a difficult time building trust and finding someone to work with you if the main objective is to beat down cost.