Most people are still fearful especially when it comes to the Michigan market which makes it an awesome opportunity to pick up good deals. 

My idea so far is something along the lines ofReceive list of non-performing loans offered by a bank, Freddie Mac/Fannie Mae, some other source.Underwrite each loan to determine the price we are willing to pay, given the info providedSubmit bids on each loanPurchase the pool of loansReach out to each homeowner, determine whether new terms, deed in lieu, or foreclosure is best optionSell newly performing loans or foreclosed propertyDo I have it mostly right?

Can I purchase the condo and at a later date, if I determine it necessary, sell the investment property I already own and 1031 exchange the proceeds into the condo I have since purchased?

The DP requirement is 15%, so depending on your cash flow this could be the determining factor. 

I would love to meet up with a South Jersey investors and pick some brains.

I have held jobs such as working for one of the largest grocery chains in America (as a cashier lol) to picking up decedents as a independent contractor for funeral homes.

I've been looking at picking up houses through the auction sites (Hubzu, Auction.com, etc) and I know that as the buyer I will be responsible for closing costs.

I was able to pick this one up from a private seller who I tracked down via delinquent  tax liens.Keeping the property does align with my goal of purchasing  2,500 cash flowing units in the next 5 years.

The problem with that, as I see it, is that the repair costs are part of what determines your offer amount (the whole 70% minus repair costs thing).

Do consider your travel expenses.When doing your cost evaluation,  think of any investment as a long term one and figure the worst case scenario to determine your offer.