Then your strike price to execute the option follows the declining principal balance of the Note.Seller walks away whole and still gets the benefit of interest write offs on taxes and now no management. 

Once I get their info, do you think it's a good idea for me to contact the owner and see if we can strike a deal before it heads to auction?

As we are all aware of the importance of online presence; however, top notch photos/staging is definitely key to the marketing and striking interest.

one thing to consider is the value of your time. if you buy a home now, then buy a rental, what will you do when murphys law strikes and you have to fix things at your own home, while trying to rehab a rental. it may be in your best interest to get a rental going first, if you can get a good deal on rent

I dont know about the law, but a breaker and/or wiring could be fried by a lightning strike a failure of the dryer etc.  

Sort of "strike while the iron's hot."

I don't quite follow your first paragraph... she lives in the unit upstairs above you and she comes down to your unit to strike up conversation?

Echoing the geometric axiom "The whole is equal to the sum of it's parts", I learned a long time ago to employ it when it comes to analyzing and striking a deal with the following advice: Never agree to a defined piece of an undefined whole.In the current case, this means don't agree to the terms and conditions of a hard money loan (or any critical variable of an investment) without fully understanding the cause and effect of all critical deal points and variables.

Should apply 3 strike out rule.

Not trying to be encouraging or discouraging but some of the timing just strikes me as odd.