@Kevin Schultz In my area you need cash to purchase from the auction, typically a percentage is paid upfront with the balance being due shortly after.  

We think that this is because we are pretty good renters, we always pay our rent on time and I sometimes fix little things around the house that need repair.Around the time we started that 2 years ago,  we had an off-hand conversation with the owners where they told us that they might be willing to sell us this house as we have never before owned a home.Two years later, I've discovered BiggerPockets and I think that buying this house might be a good way to start in REI.

But we were short of paint and got more paint with the same color and completed the task.

And it would have been that much harder if it wasn't a short-ish drive away.   

I have four short term rentals here that perform really well year round. 

Dos it require rehab or just need a short term bridge loan?

If you're coming in min down payment, long inspection time, long closing, no one is going to care.If you come in close to market value, short inspection, short closing, above average down/deposit....

I bought my 1st 4plex in Edinburg about 6 years ago as part of a short sale and that turned out really nicely.

I am a little dismayed with the short-term setback, but I welcome the opportunity for growth.Is anyone else going through a similar situation?

Do your homework - there is no short cut in this game.