However, from my experience there is usually a few "top dogs" that win all of the good properties at the auction. 

In short that high mortgage is causing me to be negative in cash flow.

(looks up via public records ahead of time so you know the answer; this question usually trips up an imposter reference)I also inject RE lingo into the conversation if I am dubious as to the authenticity of the person. 

In short that high mortgage is causing me to be negative in cash flow.

In short that high mortgage is causing me to be negative in cash flow.

Depending on your state's requirements, I usually will buy decapitated ugly homes directly from the public with no agent involved and in those situations I have a disclosure that states specifically that the seller is selling the home significantly below market value (I also wrote the the ARV in there so theres no evidence that the seller or buyer didn't know what they were buying/selling).

REO’s are typically sold with a Special Warrany Deed and with title insurance....the auction terms usually tell you.

After 15 years of investing my #1 rule is never buy or create Alligator properties (negative cash flow) - Regardless of Appreciation.

@Sam hate to admit it, but i been using same model for 10 years. i purchase 2-4 unit buildings in need of work with low rents and bad management. i raise rents to market value deal with turn over and usually sell to a bay area investor who thinks we are all rookies in the valley. :)

Going up through walls is easy, often just 2 small holes in the wall, one to drill the plate and and one for the cat, the cross piece between studs usually halfway up a wall. fishing in the direction of the joists is easy, going across them can be done with small holes spanning the joist, notching it for the cable, and then put a steel plate over it.Given that your problem unit is ground floor, it's likely you can fish up from the basement very easily for outlets using "old work" steel boxes, plastic boxes don't work with plaster on lath, it's too thick.