So I would make sure you keep your eyes open for pitfalls when absorbing other peoples teachings/wisdom, even mine, or especially mine :)  Go do your own homework, find other opinions and weight their ideas by their merit.

What if I couldn't secure the full amount to purchase a property and instead could only come up with 20-40 percent; Could I get a traditional loan with a promissory note along with my W2 and credit info? 

Unfortunately, the seller cancelled the contract because they were unable to secure other housing accommodations.

They would have very little security.

We've agreed on $1850 per month and 1850$ security deposit....plan on signing a lease soon... for Feb 1 move in. 

Who's security deposit does the wall repair come out of? 

@Henley H.Not sure where you are and what is customary for the area but you’re knowingly entering into a lease with someone who is low on cash reserves if they don’t have first, last and security.

Also the auction time from is short, often too short to secure a loan. 

First, any security deposit he has, could likely be shifted to down payment at closing. 

The loan is secured against your home, but used to buy a rental property.