Traditional buyer / agent relationship - source deals, negotiate, prepare paperwork etc.I am more interested in #1 because I am very proactive in identifying deals on my own (with some limitations of course). 

I very much agree and identify with your sentiment around letting go of the "do it all yourself" can be very hard, if not in business certainly in working on houses, that's perhaps the toughest. 

The house is located in a very high-demand neighborhood and has great visibility.This is a completely new experience for me so please excuse my naivete, just want to be prepared and identify any potential blind spots I'm not thinking of.Thank you in advance for your feedback! 

Also wondering if I should contact developers/home builders to see if they might be interested in the property. 

An expert can also help you identify the entry point you might have overlooked and suggest ways to prevent future issues.

What is the most efficient way to identify the individual in a bank that makes decisions on REO properties.

That is for the great properties.The crap that is mediocre or bad sits on the market in NNN and THOSE sellers will often consider going under PSA in your early selling of your property but that is because they are selling stinkers of a property.Be careful of new builds with merchant NNN developers.

The successful note businesses learn how to WORK a note; identify unrecognized value; deal with near bankrupt borrowers, foreclosure, default, attorneys, services, governmental regulations, collateral deficiencies, capital demands, and negative “surprises”.  

They can help you identify suitable locations and analyze potential properties. 

Either look online or go to your county and review your municipalities land development code.