The problem arises here when the property was severely underwater and the reserve price exceeds the market value - which an experienced lender should adjust if they actually want to sell the property at auction.

in the terms of keeping things simply yes the price is all that matters, I understand that, but that was not my intent with this post, I was not trying to get advice on analyzing a deal, my intent was to find out what are the buyers plan of action when a situation like this arises.

This will save you time and money down the road should an issue arise. 

I am also happy to field any questions about the southwest Montana market should they arise.  

Yet others will consider the equity in the unit as their elasticity, with the intention of refinancing their cash out of the unit if a situation arises. 

And what if you get the property under contract quickly w/o going to see the property and a big issue arises, is it easier to renegotiate?

Having an ownership interest in the collateral held by a lender does not creat an obligation to them and they can not hold her to the obligation, therefore, they can't insist that she suffer any loss arising from the debt.That's my story and I'm sticking to it.

I would like to wait until this time so I can have money in the bank to allow for any of the uncertainties or emergencies that may arise.5 + year plan:Acquire more rental properties to start building long term wealth.That is what I have so far, I know this is a work in progress and the business plan should always be treated as guidelines and should have some room to maneuver as well as grow and adapt to the ever changing market.As far as how much money I would like to have in the bank, well I haven't come up with a realistic goal yet.

When issues arise, you need to get them fixed as soon as possible without waiting for the issues to get worse!

Ensure that your lease provides for termination for violations of law or ordinance and for your indemnification for any loss arising from thier occupancy/lease regardless of any contributory negligence or legal liability.Parrrrrrdeee, Parrrrrdeee !