its kind of a trade off because i can get a newer property at a higher price and down payment, or get something older, less down and then use that money to fix what i need to fix. 

They walked away from their leases, took FEMA money to move (and maybe even replace some "damaged" possessions, and are now living in new housing on the taxpayers dime. 

You might still make some money...or you might loose just a little while you learn....but I think chances are unless you totally mess things up or every part of the deal goes wrong, you end up with most of your money back....AND you learn and develop some relationships.

Perhaps the sale price listed is based on the balance owed?!?

IN Oregon. we have very few derelict houses or building very few.the one area north of downtown ( the old warehouse district) most all bigger cities have those areas.. the City put a 10 year tax abatement for repurposing the buildings to residential so buyers did not owe property tax for 10 years. 

For me I invest my SDIRA money in debt investments which typically are ordinary income when using w2 income and use my hard earned cash to buy properties. 

Then when it makes sense, pull money out or 1031 into something new.

.- You don't need to offer the full asking price as earnest money, but a large deposit definitely helps woo the seller into believing your offer is serious.

Performing notes the investor makes money from the monthly payments at a ROI determined by the payments and the amount paid for the note.  

Look for a private money lender that will finance some or all of the deal.5.