These are auctions that often literally take place on courthouse steps due to a lender foreclosing on a property due to nonpayment.

I have decent liquid assets but they would take a huge hit dropping 10-20 percent on a 2 million + loan.  

In other words held for steady cash flow.My VARIABLE (note) PORTFOLIO consists of more active/speculative notes - non performing notes I purchased at discount to principal owed; notes I hope to “work” for enhanced ROI, real property I “purchased” with a leaseback option to repurchase, and defaulted notes I purchased planning on eventually taking ownership of the real estate, as well as notes I created that don’t have current payments but provide a guaranteed return plus an equity “kicker” when the property is sold. 

Hi Adam,It sounds like you're taking a thoughtful approach, but there are a few things to consider.

I'm also I'm concerned that with sleeping sofas, users would have to put on (and take off) the bedding every day.

I can be patient, but I like to take action quickly.If I were to save for a decade (reserves + downpayment + closing costs), would I have been better off acquiring out of state properties or essentially being a bit of a slum lord to scale my portfolio faster to build equity?

Quote from @Daniel Baker: Hello everyone, Looking to get a little insight into what things I should take into account when selling a property.

The National Association of Realtors says that the average profit on a flip is is $15,000 and takes 6 months from start to sale.  

While his loan isn't assumable, you could structure a deal where you take over payments while giving him equity in a seller-financed second note.

He's in Austin so a little ways away from you, but he probably has a good referral for a builder in Dallas who could take on a multi-family build.