I'm also an engineer (mechanical, not electrical though) and my wife and I's goal is to cover our expenses with passive income to reach financial independence.

I found some utility and mechanics liens which will remain past Foreclosure.

The big one would be what are the deferred maintenance items roof, paint, mechanicals because your reserves aren't going to do it if you have a lot of  deferred maintenance. 

I typically broke my rehabs out into no less than 4 phases (draws) and larger rehabs would be more like 6-7 phases/draws.TIP: Have contractors complete a W9 form for tax purposes, and have them sign a mechanic's lien release so that they can't file a mechanic's lien on the property (some lenders may require this).

@Chris Moebius if he would play it by the book he can put a mechanics lien on the property.

I do this with all the major expenses: mechanicals, appliances, roof, finishes, driveway, sewer line, landscaping, etc. 

Just trying to make sure I understand the mechanics of a foreclosure auction when the holder of the 2nd mortgage is the one foreclosing. 

As a house flipper, your network should include all of the following:-Real Estate Agents-General Contractor-Home Inspector-Handyman-Title Company-Lenders-Designer-Architect-Structural, Mechanical, & Electrical Engineers-Wholesalers-Insurance Agent-Stager-Photographer-Cleaner-Gardiner-CPA-AttorneyPlus you should know some other local house flippers in your area.

The key is having the independent water runs from each unit to your mechanical area {in particular the cold}.

I want my first property to be a buy and hold, however; I have always been very mechanically inclined so in the future I will do some fix and flips to provide me down payments for commercial multi-units.