They take possession of the property in foreclosure. 

Whether it's about deals, property management, or anything in between, I'm all in for a good conversation!

One option is I can cash out refi one property that has $400k in equity. 

If you rehab a house in one of the neighborhoods you're considering will it be surrounded by other abandoned distressed properties or are these abandoned properties located in decent neighborhoods that people will want to live? 

If you live in the property for at least two years, you can sell it without paying ANY capital gains tax (unlike traditional flipping).We've done this a few times, but almost every time, we end up keeping the home as a rental.

The borrowers pay significantly less for those appraisals; they usually lack vital information, tend to be performed to much more “lax” standards, and often lack good decision making as to comps, capitalization rates, and adjustments of value between the subject property and the comps.  

My wife became a realtor in March & I recently jumped on as the business development manager of a long-term property management company.

I dont have experience buying but have looked into it, from what I can tell, if you buy it at a tax auction, The owner has a certain amount of time to reclaim the property.

Lilburn is along the same lines as what I noted above, your acquisition budget needs to be at least around $300k (maybe high 200s) unless the property is distressed.

You can do a quick search to bring up a few options that might fit with your property's location and your budget.