Always learn a lot from you regarding local market knowledge and broader RE.Question to all,I'm new to this concept. 

The latter will have higher interest rates whereas the former has a 2% interest at my local credit union. 

I don't believe there is a common practice, its going to be dependent on local standards.

v=u79Lxf1GKjE   Here are some videos, For your referencehttps://www.dailymail.co.uk/news/article-13211931/Washington-landlord-serial-squatter.htmlhttps://www.the-sun.com/news/10829162/eviction-housing-washington-protest-squatter/https://www.foxnews.com/media/seattle-area-community-protests-con-man-squatter-leave-rental-house-exploiting-systemhttps://www.dailymail.co.uk/news/article-13211931/Washington-landlord-serial-squatter.htmlhttps://www.mirror.co.uk/news/us-news/community-protest-con-man-squatter-32386211https://komonews.com/news/local/bellevue-landlord-plans-protest-rental-home-eviction-notice-tenants-rights-nonpayment-rent-123rd-ave-se-housing-justice-project-hjp-writ-of-execution-court-state-legislaturehttps://twitter.com/choeshow/status/1769071379658551783https://x.com/choeshow/status/1769570234556641427?

From talking with a few local folks my take away is the numbers published is the very highest amount you could get and isnt always what you will get. 

TN offer OTC, it's extremely benefit to locals that knows the area well.

Research local economies, population trends, job growth, and infrastructure developments to identify promising markets.

Is this a commonly successful approach given the local real estate and rental market dynamics?

I own and operate a local firm here in Green Bay.

I am an agent and investor in the area and I'd be happy to connect and chat more about strategies and the local market.