If judge denys, my question is if the previous owner does not claim the surplus money can it go to the 1st morgage so that when I do try and negotiate it will already include the winning bid amount? 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.

Tenant pays for almost everything, including HOA, property taxes, ordinary R&M.

And which terms should I include in the lease to be protected as the landlord?

Hello everyone, anyone I have spoke to about REI in my personal life all tell me the same thing: don’t get into real estateThey are all people who have had properties themselves, have tried to rent them out and have told me horror stories of tenants and how repair costs or costs to property managers make it disadvantageous to earn profit or scaleI’m trying to invest with my spouse who is also included in these conversations.

This includes, repainting and patching some holes. 

Here's a simplified and effective approach: Gather Information: Obtain details about the property, including its purchase price, estimated rental income, expenses (such as property taxes, insurance, maintenance costs, and property management fees), vacancy rate, and any financing terms (e.g., interest rate, down payment, loan term).Calculate Gross Rental Income: Determine the total potential rental income the property could generate annually.

To find investment possibilities, consider elements including property pricing, demand for rentals, vacancy rates, and economic trends.Think About Financing choices: Investigate your choices for financing a possible real estate purchase, such as FHA loans, conventional mortgages, home equity lines of credit, or other innovative financing techniques.

I recommend to get  fully pre approved so you can be prepared / educated  and  aware of your options and the  present numbers 

This includes the basement which will be a 2/1.