@Michael Evans it sounds like a good idea on paper, but I still think it's a gamble..

It takes work, but if you know the value of the property then it's worth the effort.In this case, Hard Money with a refi down the road might have worked out but it would have been a gamble. 

They want to buy their first buy and hold they have very little funds but a good job and credit that leverages you into a house in the mid west or out East but the TRUE cost of ownership especially in the low end is so high they quickly go through what little reserves they have.Its a gamble and a risk..

I know I'm taking a gamble but hopefully it's worthwhile.

With real estate for me the risks are measured, with stock and my lack of comfort with the market I feel like I'm just gambling.

Gambling is just one item on a long list of fun things to do in one place, just like a cruise ship.

Tax deed sales involve risk and a little bit of an informed gamble.

(Of course, people do it anyway and gamble that the IRS won't catch up to them or rule against them.)

Yes, I am on the cautious side, but am I missing something or is this strategy just the replacement for no money down and gamble the wad?

Obviously it is not a game and you do not want to gamble, but if you know you want the property and are prepared to close quickly with cash, then go as BIG as you need to on the terms in your contract without offering a price that is so high you eat into your profit margin.