The option that I am entertaining is to purchase a multi-family that will cash flow enough so that altogether, the two properties cash flow positive.

Currently I only hold stock, options, and crypto as I am just starting out in my real estate journey

There might be cheaper options, but it's important to remember that you often get what you pay for. 

If you get a property for $15k at auction here in SFL and it's worth $250k, you just lost your money 99/100 times.A $55 title check goes a long way.Only options you have is to rent until bank kicks you out to try and recoup some investment, if it needs fixes don't put money into it, you will not get a penny back from anyone.

Working with realtors for valuable market insight and contractors for scope of work might be a good option for you starting out if you don't have experienced flippers you can work alongside that know this stuff. 

Both options have their merits, but with the market fluctuations and my unfamiliarity with the area's real estate landscape, I could use some insight. 

But you ALWAYS have the option of shopping with your feet. 

It's important to explore your options thoroughly to find the best fit for your investment strategy.

Every lender can be different but there are options that allow as little as 10% down and 100% of rehab financed. 

My questions:- option #1: rent it out on a month to month basis until the bank forecloses with full disclosure to the tenant.