If they are on-board, you win.

It's basically just a big ol' credit card that you use when you need it.

I am a broker and contractor, so I like to to look at the whole deal, acquasition + rehab + hold cost in order to make the deal a win-win for everyone....

Sharpen up on your negotiation skills for use with the current occupant should you win this auction. 

small deals are very difficult for investors.. because as stated if something goes wrong the cost of collection could exceed the investment.. rip it off of a credit card.  

If you live in Lima Ohio like Ben.. you probably don't need as much as if you live in Bay Area like Brian.. ( don't know were serge lives)... and we all have to work.... at something .But those I know that are retired generally own everything free and clear.. and live off of surplus rental income or interest income.. then we all have the things we like to do.. if its just living in a home somewhere never eating out never travelling hoarding your money that's one thing.If you need a budget for travel.. bling for wife... credit card for wife.. school for kids or grandkids. etc etc... so it really depends as they say.I do see many on BP that have a quasi magic number that they can then quite their day job and that is 10k a month off of positive cash flow.... so for whatever that's worth...

If you sell it right to them and (downplay that you just bought it) they should base everything on the current value.The appraisal/evaluation is the wild card. 

Look for similar properties currently for rent in the area and contact the landlords.They can be your best source for cash buyers if they are multiple property owners looking to expand.Also go down to the courthouse and attend the foreclosure auctions to meet cash buyers buying homes on a weekly basis for rehab and resale.Walk up to them with your business cards and your 3 properties info and ask what type of properties they buy on a regular basis and ask them for their card in return.

They can take out a HELOC or a 401k loan, or use a master card for moving expenses. 

Keep your card utilization under 30 percent.