What approach do I use and how do I sell them on putting up some funds and I do all the leg work?

You are right in stating that there are many different ways to approach your RE investing to make sure that they work with your long-term goals.

If you seem like the "common person" you will be more approachable.

Okay guys I'm new on here and I'm asking for anyone's help on how they might approach this deal.My uncle has a neighbor who is letting her home go to foreclosure.

You could take a couple of approaches... (1) a full (or partial) tenant change out with notices you mention; (2) let them all revert to month to month (or do new month to month leases with your terms is better).

They approached a couple property management companies in the area to get rates, then approached me asking if I would be interested in managing it for them for that rate, instead of them paying someone they don't know.

I'm wondering how flippers approach something like this.  

If you are referring to the ability to terminate the tenancy at your discretion sooner, a M2M tenant would generally be the correct choice, but perhaps the wrong approach.

I found a 6 unit that "supposedly" gross 40K. So I ask for the income and expense statements, not sure what they are called in the real world, and the agent says that owner managed the property himself for the last 10...

I believe the approach you described of using the market cap rate against your increased NOI to determine the increased value of your property is more appropriate for commercial buildings (5 units and up).