I think that would be the first step and they could advise you as to the best way to qualify for a loan and/or whether or not it makes sense for just your cousin to be on the loan and for you to have a partnership agreement outside of the loan that covers that. 

My question is: In this particular market is it it possible to offer home owners who have their homes on the auction list a price that covers their back taxes and interest along with cushion money to sweeten the deal and buy that property free and clear?

I’m looking for a way to efficiently pre-screen tenants.  

Does it help that I have plenty of capital to cover the down payment but just want to preserve capital?

Using these attributes will minimize risk.A good property management team will screen tenants for the credit and job history which will minimize the risk of the example you pointed out.

Definitely a club to follow since they cover so many different subjects through the year.AREA Real Estate Investment Group - Meets once per month.

The tenant passed the screening and I want to rent to her as of 12/1.

The repairs & the remaining 80% of the purchase price will be covered by a loan (which, in turn will be covered by the rental income).  

I haven't allowed for much of a ramp up period and as a result, haven't budgeted the funds to cover the expenses in the beginning.

That is the thing that has always scared me about the whole process.The good news is you can screen all applicants the same in other areas,  so make sure you have credit/civil/criminal (not in seattle)/references criteria that you are comfortable with even if your applicant is fully subsidized.If your particular applicant has $1700ish income on their own they are probably among the stronger sec8 applicants around;  might be worth giving them a shot if the rest of their background check comes back decent.