I am assuming insurance, taxes and some local fees would be applicable as part of the expenses. 

You need to supply tons of documentation with your offer, and highest bid dose not guarantee you get the house.  

Let lender supply documents that he wants executed and recorded.

Actually buying in a place I lived before moving to CA, it has had very strong long term growth for many years and I already have all the necessary infrastructure in place (agent/mgr, insurance guy, etc.)

 $66k left on the loan ($600 month payment with taxes & insurance).  

You only need one document to answer your 99k to know if it's upside down or not, but based on your responses, it's not worth telling.

If my seller did not receive the proper documentation by the proper date, I would recommend they work toward keeping EMD. 

Taxes and insurance will eat over half of that. 

I've been told that umbrella insurance might be a better option, simpler, cheaper, while providing adequate coverage for most individual situations.Any thoughts? 

., pay for property insurance, rehab cost, etc. with your personal money)- Using non-recourse loan: As Jason suggests, you can take out non-recourse loans for your IRA/401k investments.