There will almost certainly be third party bidders that will bid and drive the winning bid up, since there is so much equity in the home.Once the auction triggered by the senior lien is over the winner walks away as the owner of the property with a trustees deed.

Fix it before more potential buyers see it and either walk away because they suspect there are more problems and it is not worth making an offer or send you a low offer because they suspect there are other problems and they overestimate how much it will cost to fix the obvious issue. 

As a Real Estate Investor, your job is to make an appointment, and go through all of the sellers' choices after you walk through the house.If there is little equity/pretty house, you can rent it out, sell on sub2, wrap, lease option, etc.If there is mid equity/pretty house, you can list it, sub2 and a note, lease purchase, wrap, lease option assignment, sandwich lease, master lease, etc.If it is free and clear/pretty house, installment sale, list it, lease purchase, wrap, lease option assignment, sandwich lease, master lease, etc.If it is a "mild rehab", see about a JV with the seller, give the seller a note for equity no payments for 4 months, use private money for rehab, get on title with a sub2 or wrap, then sell it and pay off the seller and the private lender, earn 10% for a JV fee.See https://vimeo.com/131984718

I do remember that they put an access code at the main entrances and once you entered... you walked down old hallways that still looked like an old school hallway with the condo entrance doors to the left and right.  

So right off the bat (from the moment I walked in and met her) I knew I was doomed.Long story short: The male seller and myself had a great conversation.

Can someone walk me through the math? 

I'm hoping to fit that in with Work and school once the fall semester starts.As far as a mentor is concerned, I would like to have one that can help walk me through my first deal just so I could get a really good feel for it. 

Fill in the foundation below.Check out the Start Here page http://www.biggerpockets.com/starthere Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.

A buyer's inspection could be nothing more than you (the buyer) walking the property and inspecting (viewing) it. 

Until it "turns" you are stuck with the current riff-raff walking the streets or renting below market rents.