Laws

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Check the laws where you are; maybe ask a realtor. In CA, they have very restrictive laws about doing this. Doesn't mean you can't do it, but you just have to "play the game".
In CA right now with the hot real estate market, I think it would be VERY tough to do this. House two streets over in the same tract sold in less than a week just a week ago. So who would need to dump a place at low market value? Possible, but just very hard to find these deals nowadays.
I used to do this a couple decades ago. I had a contact who would buy places when the owners defaulted on pool loans. But places then sold for around $30K and are now selling for $500K! I couldn't make a living at it then but could if I had lived in the places. Figure also that you have to do your own work.