We have an initial package that we put together that contains the property details, comps, repair costs and then has a summary with purchase price, ARV, repair costs, shows holding time, holding costs, buy and sell fees etc.Every HML will have their own application that they want you to complete with their own format of PFS.  

Last week, a property came up for auction that had been vacant for more than three years and needed a complete gut (conservative reno budget of $30K).

If your lease is for five months and the CC&Rs stipulate leases have to be six months or longer, than they may not grant "approval" but if your lease is in complete compliance - what would they be disapproving? 

My business partner and I are completely new to RE investing and decided to attend an auction on the Courthouse steps this morning.  

And as a shrewd investor (especially one who is flexible and willing to move often) can reduce or completely eliminate this expense by "house hacking", following any of the options you mentioned or the other posts mentioned in this thread.

If you just simply allow tenants to walk into a bank and deposit any amount (on any date) they choose it could delay the eviction process.

If you have the skills, the best situation is to find a property that needs work, complete some value-add improvements, then you can raise rents.  

But that is completely dependent on the location and condition of the property.

They will simply consider that in their Net proceeds from the sale....it lowers the net of your offer.

However properties are bought at bargain prices every day by people who are sharp negotiators or who simply are able to see value where others do not.