And on my subdivisions I am currently building I do not record CCR's or create a HOA.. its only mandatory if we do a PUD... since I am building all the homes and ( praise the LORD almightly ) they all pre sold we are in and out of 27 homes in one year.. and I just leave the folks to self govern themselves.. there are actually a lot of buyers ( at least at these price points starter homes here  350 to 400k) that prefer NO HOA

Pre-foreclosure means there has been no foreclosure sale. 

I have already dealt with some dishonest ones who just want to collect rent and get paid for just doing that and nothing else.

, you should get pre-qualified first with a Hard Money Lender, understand how the process work first , find a mentor in your area and learn the process before you go get on a property.

Draw up an option to purchase that allows you to sublet the property or do a land contract if they are legal in your area for the property if he is unwilling to transfer the deed without getting paid in full so you both have something in the deal but benefits as well.

Ha ok so I'm kind of ruling out the 600k property unless maybe someone who has the house paid off will accept a low offer with owner financing, kind of a long shot though.

Submit offer with pre-approval / proof of funds letter2.

You will not learn how to gauge the cost of said work until you have gone through several rehabs and performed and or paid for the work.At this point you need to contact some G.C's and have them provide you with quotes.

In that case a deed could be issued to you only when the terms of the land contract are paid off.

The other part of wholesaling that is a possible red flag is Equity Stripping, AKA Illegal Flipping, this was heavily regulated till a few years ago by lenders, especially M.I. companies, they have relaxed the rules, but was a problem pre and post crash. seeing the increase in this activity seems eerily familiar,  like 2007 all over again. just be careful especially with your license, Disclose Early, Often, and in Writing, My license is too valuable to me to be involved in this type of transaction, so i steer clear. if my entity is on the contract, I am the one closing. period.