If I am looking to retail a home for top dollar it is much better to work in the cleaner communities.

And for top dollar.   

and get things for pennies on the dollar.

I don't have a set % below my top dollar it usually depends on the age of the property, any recent photos of the interior made available, etc.

But if it is $20M, then people are like, "now it is worth my dollar".

Mileage, computers, supplies, business meals, etc that are for business purposes.When your LLC spends one dollar it has the buying power of about 1.3 dollars since you are spending pre-tax money.  

And also "only a fool holds out for the top dollar".

With foreclosure you will most likely end up with deficiency judgment and lender will add everything what they can possibly add to it, so you might end up with foreclosure and maximum amount of judgment.If short sale will not cost you anything and with all professionals doing their part not paid from your pocket and with better chance to avoid deficeincy judgment or if any than reduced to the minimum amount with settle it later on for let say 20 cents per dollar it might be much better for you than with foreclosure.

There are some great deals now with many older generations selling their properties, great renovation opportunities, and at the moment a very strong dollar.  

in regards to buying from them directly I wouldn't think that is a good idea if you are also trying to rehab one of these properties.Most of these investors are buying and flipping, unless you are looking for a newly remodeled home at top dollar it doesn't sound like the best option, but it really depends on what you are looking for and what you would like to do with it.It also depends on your margins, at the end of the day if the numbers work they work , if they don't then pass.