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! 

One of my life goals is to develop affordable housing.

If you can't put 20% down, you can't afford the property.

There's potentially to create some really interesting architecture, provide affordable housing, and create a great cash flow asset.Does anyone have any experience with this kind of development?

I use onsiteproperty manager.com it is pretty affordable compared to the other ones out there and user friendly. 

(I say this since it's your first flip and assume you haven't done business without a realtor before)Lots of people say they want things, but either can't afford it or change their minds when it comes time to pay up.Don't customize anything to buyer unless you have substantial non-refundable deposit.Timeline - sounds like a big remodel - timelines are hard to make work with a pre-determined buyer.Do you want a buyer walking through your job site all the time?

Buy more affordable houses.

When interest rates are low, if you can afford a high-end car payment, you can probably afford a second home, if you don't go overboard and appearance for your second home in a reasonably priced area.