I Though I brought a certified check as required to jump in if I wanted to actually bid, I went with the intention of observing and walking the property during the inspection time and just listening to all the other experienced investors out there and watch them do their thing.  

It would be educational to attend your local court as an observer prior to actually owning property.

I base these observations on both my experience as a landlord, my familiarity with eviction records (which I marketed to for years), and my general familiarity with the market.

Go visit open houses and observe the property (and other agents!)

They observe the materials used in the home and make calculated adjustments.  

You need to observe the local markets ADR and Occupancy.

Then compare my theoretical offer to the listed asking prices (looking mostly at FCI listings).For the active brokers, buyers, and sellers out there: is there a typical bid-ask spread that is generally observed based on certain characteristics of the note?

It will have a higher cost, but will allow you to observe an expert in action, see how they choose and manage subcontractors, and how the process moves along.

@Justin Tahilramani - That is an astute observation and an excellent excuse for why I need to find a fast-scaling capital structure and business model.  

What I observed was 11 water heaters from '83, at least 3 furnaces need replaced and likely all need maintained, as the central AC units went out he replaced them with window units, active plumbing drain leaks and many locations that leaks are imminent, no less that half the units still have fuse boxes, there are a few broken window, never trimmed trees and more.