While still technically in seller’s market territory, inventory is well above extreme lows seen in recent years.

Niche neighborhoods of established metros. 

Older property we bought which has two low spots where water accumulates.  

The median home price is also very low nationwide which creates a low barrier to entry.

We would live in it for at least a year (as required by the FHA loan), and then move to a rental house in a good neighborhood with good schools.

I'm from the Philly suburbs and definitely interested in tapping into Philly neighborhoods (thinking Brewerytown, Old Kensington) but as you know if you're from Philly, neighborhoods can be safe or not depending on what block you're on.

In terms of finding funding, BiggerPockets just released a video yesterday talking about this called NEW LOW Down Payment Mortgages Are Here (Put Just 1% DOWN) which might help.

What happens if you blow the opportunity to secure the deal because you offered too low, spring comes around, housing heats up again, and the ARV is now $950k??

This housing affordability extends across various neighborhoods and zip codes, presenting a diverse range of options for prospective residents.Neighborhood Diversity and Housing OptionsNew Braunfels’ housing landscape is characterized by its diversity, offering a range of options to suit different preferences and lifestyles.

It really only worked (practically and financially) due to low turnover and really great tenants.