In this market it is more difficult, but I think those that say you can't get seller financing don't ask for it.  

We have some clients that are flipping homes.  

I can't tell you how many times I've gotten me or my clients a hell of a deal because we can break down what needs done (think: Major structural and/or major safety issues -- not cosmetic, never ever ever bring up strictly cosmetic issues!)

As an architect, doing site feasibility studies and zoning reviews is one of the ways we bring the most value to clients.

The two parties were about $1,200 apart and my client spent more than $10,000 chasing that $1,200 based on the "principle of the matter."

It depends on what your policy states.Most of my clients who have had total losses(max policy payout) will get paid directly and general contract the rehab or sell as is.  

I have not been to a tax auction yet and wanted to know if there was a way to buy before it hits auction.Is it difficult to get title ins on those? 

I second @Ronald Rohde, its a difficult question to answer without knowing your specific goals (for yourself and the property), risk tolerance and local RE market etc.Are you trying to decide between opening up your own business in the second unit or is your list of business the potential tenant pool? 

My guess is that the type of hands off 'don't want to deal with it' buyer you are looking for is also unlikely to be able to see past the 'ugly' current state of the house.I could imagine it working if you show them something finished (model home) and not show them the current ugly state.I heard a story from a high end ($50k tables) furniture designer who once made the mistake of showing the client the table in progress with clamps, glue and unfinished surfaces etc.

I am recommending to my clients to file if they have quite a few shingles off because if we have another hurricane that deductible goes toward the next one for this year.