People tend to believe that the danger that they face in taking action is far worse than what they will likely encounter in reality.

Using this approach, keeping withconservative rent growth and vacancy assumptions, and factoring in the fully matured real estate tax amount post-abatement, the Y1 projected cash flow of $570,561 ($670,561adjusted down $100,000 to account for the fully matured RE taxes) would value the asset at roughly $11.4M at a 5% cap - a substantial savings from our purchase price of$9.8M.

Basically it's set up as 2 condos instead of a multi-family so no one could get a mortgage to purchase the whole thing.We were able to come in with a substantially lower bid since we can pay cash. 

If you're not comfortable, don't do it, but if you're able to get a substantial discount (which is the point of buying at these risky auctions) then it may be worth it if you can stomach it and you have the cash. 

Any thoughts or advice would help me out substantially! 

I currently have a rental property with substantial assets gains. 

The list goes on...All of this can delay the short sale review process beyond 30 days but if it's a substantially complete package, all lenders are required to decision within 30 days.

Bottom line is that I wouldn't even consider this unless you can get it for substantially less than the current price.

The replacement property received must be substantially the same as property identified within the 45-day limit described above." 

If you’ve found a duplex for 39k I’d say your rehab would be fairly substantial.