You need to ascertain what you are bringing to the table. 

I do believe I would be able to ascertain positive cash flow (duplexes and triplexes for 125k-250k with reasonable rental rates $1200 or so per unit for 3BR/1BA) which keeps me interested. 

You should look @ the books to ascertain bad debt and other revenue collectability issues.

Nonetheless, if you're working with the right team (property managers and your contact in commercial brokerage), you can ascertain the market rent, typical utility bills and a capex/R&M budget and other details (often property level).

The best way to ascertain that is to look at your tax returns.  

Odd that you are even interested in the sale.If the foreclosure advertisement doesn't provide the address or at a minimum the parcel/Tax ID number of the property or the recording information of the security interest being foreclosed (so that this information could be ascertained), I imagine very few bidders will be at the auction.

I guess that, for me, the challenge is in trying to ascertain what is a reasonable amount of debt to leverage at what level of cash reserves.

Economists say about 65 dollars a barrel is optimum where the oil businesses can still make money but the gas pump prices to consumers are not too high.If the barrel pricing goes really high again then it can make a boom for oil industry areas such as certain parts of Texas but have a much larger negative affect on the rest of the country with per gallon gas prices too high.Example where I live in GA 87 octane is about 2.18 a gallon.

Without industry specific experience you will have to rely on the GC's reputation...and if that can't be ascertained, look for another GC.Like they said....6-8 instead of 10 and maybe 30k, but remember we are just speculating.

You really want to look into historical expense pattern to ascertain you can afford to pay a salary.