I wanted to live in a decent area that was affordable, good rents, and close to transit.

@Cole Rollen, @Greg H. is correct about there potentially being an issue with getting a government backed loan that has the cheapest financing (meant to help Americans afford to get into a primary residence) and then using it as a rental.

Most of the time the property I think will appreciate are in really expensive areas and then its a little difficult to find one which is affordable and which I think will appreciate. 

Searched for condos in what I was able to afford and stumbled across this beauty.

Searched for condos in what I was able to afford and stumbled across this beauty.

For example, I’m not sure if your allowed to do this but could you be choosing key workers over non key workers as key workers may still be working and able to afford rent?

Thats a bit greasy at best.Thats all assuming that the reason you are pulling out is not because something unexpected was found in an inspection, which would be a totally normal thing if you wrote that contingency into the offer and did in fact not like the results of inspection.EDIT. if you have made offers on multiple properties and more than you can afford accepted, consider taking on a partner or find alternate financing rather than trying to pull out. if they accepted your offers, I would assume that numbers work.

Several agents tell me that banks who are selling these properties prefer to avoid potential buyers who need government loans to help them afford it.

I have total respect for these two individuals.And I know many could not afford this form of charity but I think those that can this just shows that Americans  can and will Rally especially now with our health professionals on the front lines.. 

I think that if you can afford to pay a few months interest without any major implications to your overall portfolio, and if you have a strong capital position, then go for it!