You can always contact the owner or owner's agent directly with your offer but chances are they might get more money at auction depending on how high they set their reserve price.

If this is the case, how would you qualify for a conventional loan to refi out of the FHA since most conventional lenders require more skin in the game and will require more reserves to secure the loan? 

You could probably do some quick math and come up with 5-8% of monthly income to go towards capital improvements/reserves.

Expenses are more than what is advertised.. houses would get vandalized insurance would not cover and they were done.no income no money let the property go... now things are better now the banks wised up you can't have no money anymore and get a loan the banks force you to have reserves at least at the time you bought the property.land lord failure in my mind and experience was1.

I know in the case of the one deal I did through RealCrowd, my CPA had to confirm my accredited investor status so my assumption is that RealCrowd covered whatever legal bases needed to be covered.

You'd want to confirm they had power to sell by checking the title.

Cash out refi, Reserve perhaps more of the cash than other investors would so you have a very safe emergency fund, and invest in at least one more property so your monthly cash flow is at least the same as it is now.

Make sure you have some reserves or line of credit to fall back on in case you have to hold it longer term.To be specific, my first flip...bought for $21k in Greenwood. 

I just show the lease and bank statements to prove the income if it's less than a year.You bring up a great point regarding DTI and having reserves to show.  

@Sarah MillerWith out knowing a whole lot about your situation I'd recommend holding off until you can build up reserves for another down payment.