3. if the previous owner does not come back, then does the mortgage company ( it looks like there is still $280,000 mortgage principle balance) will ask for the whole amount from the new owner (Me) or they more likely to work with the new guy to reconstruct a new mortgage deal. 4. if the mortgage company does not work with the new guy and forecloses the building, and if the sale price did not meet their mortgage principle number, will the new guy ( me) loss the money which had used it to win bid in the upset sale ($60,000)? 

I’m a full time orthopedic surgeon at this time.

You have to reconstruct the financials.

We're estimating it will take (+/-) $175,000 and 4-6 months to renovate/ reconstruct it into 4 units but, our numbers indicate that even at at purchase price of $140,000 it should still throw off a 20% ROI (@BrandonTurner, we wish we could buy 5 units at your prices) and have an essentially new building.

Examples:1. 65-year-old heart surgeon with no kids, no debt.

We put $120,000 in reconstruction.

You have to track the hours your spend on various real estate activities (development or redevelopment, construction or reconstruction, acquisition or conversion, rental, management or operation, leasing and / or brokerage) and they have to be more than 750 hours and it has to be more than 50% of all your business activities.  

Minimum preferred return is going to be very dependent on the LPs sophistication and net worth.My fiance is a physician and I've met some really prominent orthopedic surgeons in her medical group at various functions.

Buck is a retired head and neck surgeon (age mid 40's) and is now a full-time investor/entrepreneur. 

Perfect example: I have a client here in Phoenix who is an oral surgeon and does very well.