It seems very competitive and I have been told most people are paying over asking price AND paying the difference if the home does not appraise for the contract value. 

Not taking possession, not receiving deposit, and lack of habitability (e.g. you had a fire). 

He stated that these are “fall-back” options for individuals with less competitive credit, and that the loan package itself is ultimately more costly than conventional.

Incredibly competitive: Because this is a strong place to invest, you won't be the only one bidding on properties.

I think that’s absolute lack of respect. 

It is sad to see the lack of leadership across the board and both parties.

There are some caveats to that which I wont dive into.Second, set you minimum stay on Airbnb to 30 days that way you can airbnb that other end of your duplex legally even if your city does not allow STR's as investment properties.Third, which is my favorite... throw the multiunit idea out the window since there is less inventory on the market and competition can be more difficult.

Is there a lack of land for new construction?

As Atlanta continues to grow and competition within the perimeter become larger and more competitive up and coming areas have become more interesting.

MF is always competitive but as @Bruce Runn said there are always opportunities to be found especially as a house hacker.