Just like every other real estate niche there is probably money to be made if you study and work hard.  

But the choice will be a personal preference.  

Since the assets are already so low in value the commissions start off small & usually end up being cut at the last minute by the bank anyway......Very difficult niche to make any money in so finding yourself a short sale expert is gonna be a long shot.

Preferred locations (which are probably in opposite ordering of ROI):1.

Do you prefer cash flow, or appreciation?

Typically, when capital is returned to LPs through a refinance, the future amount paid out through the preferred return declines.

I do not rent to families, prefer seniors, so your plan to turn it into a 2 bed would be my choice.

That's exactly what I was hoping to learn.I really don't have a location preference....

The way for a small investor to compete in tax liens today is find a less competitive market or find a particular niche strategy that works where you are

While searching the internet for weeks and contacting a lot of brokers, I have had a very hard time finding any broker versed on this niche and able to help.