@Christopher Phillips correct, margins are slim.

If available you submit your bid price according to the pricing guidance provided by the note seller, eg. it can be 50% of UPB but you may submit a little less than that, i usually do. 

However, 2 4-plexes are slaves to comps so in a correction, you'd lose value.

Judging how the rents are $475/month, I'm also guessing this is either a C/D area or a very small town, which may contribute to higher tenant turnover, higher lease-up times, higher possibility of missed payments, evictions, etcRepairs at 5% also seems low, especially if I'm correct about the tenant quality/neighborhood this is in.

Good points made here but I want to correct @Russell Gronsky on one thing.

So if I am reading correct they will also manage the property but it seems that's not included with the HOA fee, it'd just be an extra cost.Knowing all this I'd definitely say this property won't cashflow.

I'm curious to know what people's personal experience has been getting such bids for free.

I have the inspection reports, the list of what I need done/repaired, and the renovation bid paperwork. 

It was listed for $580k at auction and he was the winning bid at $810kThere is this "ebay mentality" of "winning" sometimes. 

Is that correct?