The 25% is their default fraction.Though the 25-percent down-payment is once such rule its not set in stone and its not enforced by the "thought police".

You can also look for subject to and seller financing deals, but likely will need at least a bit of capital to make those deals close.Realize that as a lender, the fastest way a loan defaults is when a borrower runs low on money (either income from the property, cash reserves are depleted, or their W2 income cannot cover the monthly debt). 

Also - a borrower that doesn't have enough capital to close a loan, or none of their own capital, is the highest risk borrower for default. 

I would like to look at some properties at the auction house when they default on foreclosure.

-Scenario 1: Wife wants off the lease: You could do this as a favor, but if the husband defaults, you can't go after the wife for rent, which benefits her, not you. 

I would reccomend https://tnreia.com/ aas well as https://www.reintn.net/Default... as they not only meet weekly, sometimes multiple times but they provide excellent education!

File is with a default team and they can see the equity and will try to beat you to the punch.

Were these owned by the property management companies and the companies defaulted?

The lenders want mitigate the risk of you defaulting on the investment loan by collecting money upfront. 

It’s possible to make more and relatively less riskier with respect to defaulting on rent.