If he stops paying taxes the city will just foreclose anyway.If this does work out, it would be cool to go back to that guy and offer to make a $1000 donation to a charity of his choice, in the memory of his mother...

You might want to read Buy and Hold Forever, use that strategy instead, and use your profits to fuel a charity.  

MY VALUE PROPOSITIONI'm not looking for a charity case.

Not that you are a charity, but if you do it right--even with a profit motive-- others will benefit.You generally get some control over your success, something getting more uncommon if your efforts are lost in a bureaucracy someplace, public or private sector. 

For bad tenants that want to break their lease do you sc**w them to the wall.My question is why do you choose to pay out of pocket and operate as a charity when  a tenant breaks their a lease as opposed to requiring them to abide by the lease.

It's only hard to do if you are operating non profit housing otherwise business decisions are extremely easy to make..You need to decide whether you are going to treat your business as a business or a charity. 

You'll have to find a charity to donate the time share to that hasn't caught on to this strategy.

For higher rents, that ratio goes down because you're only trying to get one $100/month cash flow out of the higher rent amount.Learn about alternative financing menthods like subject to, owner financing, warps, or (with multis, especially), master leases.This is a business, not a charity.

In another country auctions are common but mostly for properties that need major work or which are being sold by a charity/government entity plus bank repossessions.

My unit is in Virginia, but a charity offered to install a stair lift chair for my tenant and needed my permission.