My question is:  I can not afford this property unless absolutely no one else shows up!  

Yes, they could move out overnight and I may never get paid, but legally they are responsible.3) A security deposit shows 2 things: 1) they have the money to afford security deposit and rent (credit and income verification will prove this anyway) and 2) they are responsible for any damage they create and there is an incentive (as small as it may be) to not leave the unit damaged.You may also have the opportunity to increase rents when asking them to sign a lease, of course given 30 days notice.  

You say you cannot afford the rehab costs or a loan but do you have any money you can use to at least get started with the repairs?

I'm worried because I really can't afford a 40,000 down payment on a conventional loan.  

As many as you can afford.

By making it an affordable Meetup group (without Guru’s involved), It could potentially gain huge popularity.

Further, auction buyers as a real property owner have a statutory right of notice to a senior's foreclosure, which starts the clock of redemption that must be afforded or that owner can contest the foreclosure all together.  

As a hands on individual who lives at the outer edge of a major metropolitan area, I'm curious if investors from the "big city" who are looking for more affordable markets would find benefit in the assistance of a fellow investor native to the area (to help vet properties and/or act as a property manager).  

Now mostly newer homes in a much more affordable price range than what you can get closer to the Bay Area.  

This helps explain why most of the examples where I've seen this done are done with some sort of affordable component that includes low income housing tax credits or they're done in luxury areas where the rents justify the conversion costs.