I was told there is no mortgage on the property, a title search should confirm that, right?

Doing a title search on each home would be very expensive given the auction could be canceled (plaintiff files for bankruptcy), you loose the home to another bidder, the reserve price announced shortly before auction is too high etc. 

She won't have 3-6 months reserves either, so probably needs 4-6 payments rolled in if you offer that.

I like to put 5% towards capital reserves and 5% towards vacancy reserves, because I have a reserve balance already built up for my portfolio.

@Dmitriy Fomichenko  that's great advice about reserves..

Please confirm I did numbers right.

Next week, the Monticello House in Somers Connecticut is going to a no reserve auction.

Banks “like to see” 6 months’ worth of reserves to cover rent (where the undermentioned 40k comes in.)

Carrying the two payments in terms of vacancy is because all our reserves would be used to purchase the new home. 

I see this as an opportunity to maybe purchase the house or wholesale it, the problem being I don’t have much reserves after my recent purchase.