My immediate reaction is much aligned with the crowd, anywhere you buy a $20,000.00 home for cash, prepare yourself for a substantial amount of work.An alternate option you amy want to consider is working with a turnkey provider and purchasing something that is already operational, utilize someone else expertise to grow and jump start your investing.  

This was on the condition that they left peaceably and my unit in good condition

If you are buying an STNL property with just a few years left before the option hits you better get it at a higher cap rate.

I am looking to purchase a home through auction for my family and I and the details are as follows:Wells holds the lien and there are no junior or other outstanding liens.It was established in 2011 at 175k and the property owner stopped paying over the summer so I think it's in the 161k range for what's left on the mortgage.In talking to Wells they said that they were not listing the property for auction but the owner was... yet Auction.com lists this as a foreclosure property.My father would partner with me on the cash for this deal until I can grab my traditional financing but he is worried about being on the hook for more than we expect.If I have checked with my recorder of deeds for any extra liens or overdue taxes, sewer bills, etc, can I be on the hook for anything more than my bid price if I win? 

Although us mortgage companies will put you through the ringer, but mostly because of everything that has to aligned.

Can the second contractor finish all the work left to complete the job?

Left with debt and nothing to show for it.

I should have at least left him in place until I got the rest of the building whipped into shape.

Try and define and align your mission, vision and purpose.  

Whatever is left is what I would count as long term cash flow.