You say you closed without seller completing items specified in the contract, but it sounds like you did not escrow any money to insure completion of repairs or get anything in writing that confirms they are still responsible for the repairs?  

Also the sites will often shill bid against you up to the reserve price.

There is no reason the broker would care if you pay cash or get a mortgage, they just want to confirm you are ready, willing and ABLE.

Buying from an estate is similar to a "normal" sale unless there is court confirmation required due to probate. 

In CA, I believe the only exception is short-term leases (less than 30 days), but you'll want to confirm that.If you want to see it by state, here are the license requirements.

The issue with ONLY using this method as a way to invest is that it fails to take into consideration: 1) vacancies and bad debt (i.e. uncollected rent); and 2) operating expenses (including: taxes, insurance, repairs & maintenance, capital reserves and utilities, property management, super(?)).

Bad credit is one thing (confirm this) but lack of rental history is another.

SOURCE: MBA, Federal Reserve Board of Governors, Wells Fargo Securities, LLC, Intex Solutions, Inc., and FDICGovernment-sponsoredenterprises(GSEs) – Fannie Mae and Freddie Mac Fannie Mae (FNMA) and Freddie Mac (Freddie) continue to maintain a dominant market share among multifamily lenders and both have proven to be reliable sources of financing through numerous market cycles including the last prolonged recession.

I've contacted a couple of lenders here in the Buffalo, NY area (for now, since that's where I am for the next couple of months) and confirmed my options are 5, 10, 15, 20, 25, and 30.  30 was at 4.785% (it was either.785, or .875).  

Expect to need between 30-40% down and 10-15% in reserves within the plan.