All makes sense and from my experience I completely agree with you.As for foreclosure auctions around here, we quit going when the hedgefunds and everyone's brother started paying almost retail for these homes.   

I agree that I definitely don't want to be "that guy", as I was fully committed and willing at the price we had agreed upon.I do love the property and location though, and would love to actually own it, but that price makes 0 sense.

Do these numbers make sense?

You have to understand asset performance better than you can with COC and Cap rate :)Thanks Ben,that makes a lot of sense. 

Hopefully this post makes some sense..Stuff about me:I'm about 75% finished with the BiggerPocket's "The Book On Rental Property Investing" (that blue book) and have listened/read quite a few of the resources on this site. 

It does make sense that the market may be smaller for a house that size.  

So it doesn't really make sense to remove someone from a residence.  

Visiting the properties will also give you a sense of what to expect on properties coming in the market.

Makes sense.

The IRC has no restrictions in a sense but there are other code bodies that do.