Quote from @Bonnie Low: It doesn't have to be condos or apartments necessarily. 

Yes, there's a shortage of low-cost housing in West Palm Beach and Malibu and Portland Oregon and Asheville NC and other places people want to live.

I was able to figure out that they had come upon some hard times and were significantly low on cash.

My clients who invest in Section 8 housing do so in 'not quite' transitioned communities but that have low crime rates.

Here’s the bottom line; unless the deal is VERY large, or the sponsor is going to syndicate a large number of deals, the investor will make more money purchasing the property theirselves with a option low to moderate interest rate loan.  

The Main St property in Grainfield, KS, offered a promising opportunity due to its low purchase price and strong potential for a high return after renovations.

For the duplex, would you consider it to be in a high quality (A), medium (B), or low (C) neighborhood?

But also with low debt or free and clear property that they can easily access any time in the future with a cash out refinance.

Time overcomes low cash flow to some degree... rents go up while your mortgage stays the same and your tenant pays down your mortgage.  

Low probability but high risk.