(Long story, but my husband & I recently became business owners and financing options are a bit slim with a business that's less than a year old in tow.

A lot of experienced investors are bidding in the auction, which makes the margin very slim; it is easy to over pay.  

I have ran the numbers on this deal myself when it came on the market and it was just to slim of a deal to be apart of(at least for me).

I would think chances of that are slim to none.I can't speak specifically as to whether or not you'll be able to receive $950/month in rent without knowing more about the home/location/demand, but the ratios seem too favorable based on most other available properties. 

I wouldn't touch such a slim deal otherwise.

I ran a quick and dirty on the numbers you provided, and SWAG'd the total repair costs at $12.5K, an ARV of $90K (so purch at $50, repairs at $12.5K = $62.5k invested, FMV $90k), using these numbers and the $850 rents, well, long story short, you could pull about $16k out, with a 7% 30 year fixed, with a slim monthly cash flow about $66.

Or is it just that winter inventory is slim right now?

Search on seller / owner financing / handyman special, words like that.Doing it for over 15 years, a few pointers:- Seller financed deals are slim when the market is hot, like now.- Most deals need work put into them,  The property might not qualify for conventional financing, which is why it's being offered as seller financing. 

If your current place is already a rental you'll need to prove that with a signed lease, bank statements, and reserves.The odds of obtaining another FHA loan are pretty slim and why do it anyways?

The other option is to try and sell as the market here in Plymouth for a house that we bought for around $312k is very slim but we would want to try and recoup a lot of the money we already put in.