Typically on a foreclosure auction its cash-only, obvs, but since this was not a foreclosure and a state-owned property that has no leins, they couldn't give me an answer.Does anyone have any experience with this type of thing?

Being a condo less can go wrong but when a tenant moves out you will need to paint / replace carpets etc which a typical turnover is $1000-$1500.

Typically, borrowers must provide title insurance policies to protect the lenders' monetary interests.

I cut the grass, plow the snow, etc.

In our 3 properties, we typically run a less than 5% vacancy, actually its less than 2%, but I always take 5% of the monthly rent for that emergency fund in case I run an eviction that lasts several months. 

Alternatively, you can try to get a private money loan or ask the seller to finance a portion to reduce the down payment, but typically equity is the preferred method when you need funds for a down payment.

Finding residents is a completely different process as compared to a typical rental property (assuming you are operating legally).

Best way is to get a payoff on the account which i typically do during the research and consultation stage with the client. 

Typically on short sales the IRS will issue a partial lien release.

The rental typically wont add much or any to your debt ratio, because its offset by the rents.