I might not have made clear the situation.

@Trey Hedrick I would say it's all situational.

Question In this situation the seller purchased the property for 167k last year, did nothing to it, now wants to sell for 300k.

You don't have to be a PM forever, but get through some tough situations with tenants so that you can manage your relationship with your future PM in a meaningful way.

I invest in southside flips mostly and looking for a cheap personal living situation in one of the nice north side neighborhoods, since coach houses are sometimes pretty heavily beaten up in the nicer neighborhoods it could be a project I could afford and take off the hands of someone while giving me prime location, then eventually a rental single family unit type property when I move into something bigger. 

The only issue is that i dont have enough money for the closing costs and minimum 3.5% down... does anyone have any tips or advice for this situation?

It is fully rehabbed and in amazing shape- I know I can get 750 per room bringing the rental income to 1,500 covering the entire mortgage.The only issue is that i dont have enough money for the closing costs and minimum 3.5% down... does anyone have any tips or advice for this situation?

I am curious if any other investors are in a similar situation. 

you are only allowed to credit bid what your owed and expenses.. if you paid the tax's then yes you can add them if they are unpaid then no U cant.. if you want to own the property and continue to bid above your credit bid your just like any other investor and you can bring your cash to the sale ( cashiers check) and bid as high as you want.. but keep in mind any overage over what your credit bid is.. goes to the next creditor or to the owner. and if you don't pay the first off your taking title sub too the first and will need to deal with it.. in many cases like this is can be a situation were you simply buy out the first NOW.. and your second goes into first position and your second because you advanced the 30k becomes 105k credit bid.. and then anything bid above goes to the owner or next in line.your trustee that you hire to prosecute the foreclosure will walk you through all this.. 

Of course, this depends on your current living situations, but if you own the property, perhaps you could challenge the assessed value and lower your tax burden.