Everyone wins and that's how you become successful in this business.

Oh I bet he means 43% total return on original cash investment after 3 years (or 5 or 7 years)  Not a very useful number. 

Consider finishing the attached garage to a master instead-much less expensive...but save that for the future because as much fun as it might be...I don't see a win for you here.  

The detached single family home is always the best bet.

The prior owner most likely could have sold the property for way more than the auction winning bid.

That cracked me up and I said ok you win, I'll take one third and you take two thirds of the difference.

First, I recommend you concentrate on properties that YOU find attractive as an Investor, rather than trying to work out why other Buyers might like to pay you more than you Contracted, for a property that hasn't particularly appealed to the Investor-in-you in the first place.Consequently, finding a Lender who will "cover" you by lending the money to you IF you can't track down another cash Buyer before "closing" time, becomes a win-win for both Plan A (Wholesale) and Plan B (Buy)! 

@Nick Stango  I bet unless there is an agent involved most wholesalers don't even know the laws much less care.. and of course they are just selling a contract so they are not the seller but it they come into title that's another issue.. but like I said law does not necessarily follow along with the entire wholesaling segment its a little bit of wild west really.

I had also prepared to offer the occupant cash after moving out rather than have to go through the eviction process to create a sort of win-win, rather than a loose-loose (where the angry occupant is forced out and destroys the house along the way).  

Win-win.