I would like to know how you guys estimate taxes and insurance. 

Taxes, HOA, insurance etc are bound to be different in different markets!

Asking price for a 2BR was a bit too high based on comp rents to get to our investment parameters but since the owner had no plans to use the property, I offered his purchase price in 2017 + 6% (commissions to agents) + $1,000 (assumed deductible on insurance for new roof), effectively getting a turnkey property without paying for the updates.

Francescon now lives in Illinois.Early in the crisis, cash-rich investors rushed in, snapping up troubled homes on the cheap.Big, Wall Street-backed firms and small players picked up homes by the thousands at bank foreclosures for well under $100,000.

Then you pay balance on the sale amount usually within a week for free, within 30 days with 10% interest - and wait till the deed is ready You can during that time to ask your title company to do the search and extend the title insurance but it's not for mechanic liens or taxes - you'll pay all that.That's why it's important to research the property through before you say "bid".  

If you could somehow locate the law firm handling the probate process maybe you could work out a deal.Since it is being auctioned at a tax auction then it probably means nobody has been maintaining the property since the owner died so it will be in bad shape.

If not, it's a gov't insured mortgage for a reason.3.

My advice would be to speak with a good insurance agent and just make sure to purchase the right insurance and enough of it that you're comfortable. 

You may need  the following people on your team: mortgage broker, insurance agent, RE attorney, accountant, GC, handyman (down the road).

@Cosette Trantow Going to a small local credit union is a great idea as they are more likely to give out loans versus large firms.