Sorry , I have a typo Pre- Foreclosure ;)

I currently have a pre-approval with a lender,  but  their origination fees are expensive.

According to the Federal Housing Finance Agency, as of July 2015 we had already reached the levels of November 2006 (pre housing crisis,) with the average nationwide house price of $240,000.

The meeting went fine and they pre-approved my plan. 

Either way, this deal would involve the potential investor wanting to buy & hold.My question is, can this be done while the property is in foreclosure or only pre-foreclosure?

My wife and I also own a small business that is our main focus, so for now I'm just looking to diversify and get the ball rolling with turn-key.  

You have to learn when to let things roll and when to be aggressive. 

By focusing on the student market, I'll have the ability to rent entire units to pre-determined groups, or rent on a per room basis with individual students.  

I'd like to roll the money from that deal into my own apartment deal using a 1031 exchange however I have some concerns and wanted some feedback. 

I suppose there could be a pre-payment penalty for us but still, w/ terms like that, it's a no brainer.