Correction: that should be valuable not available in "my understanding is that the more valuable... 

Lots of activity on those auctions though and typically get bid up higher then my MAO.I know how to find the owner and contact them directly but what is the process to buying directly from them prior to the auction date?

However if you're positive this area is doing well and it doesn't have:Population decline or stagnationCompanies leaving the area with none taking its placeDeclining average incomeRising average age of populationRising tax delinquencies or foreclosures I would only take the leap if you understand these and there are still risks such as the aging property which might have a lot of deferred CapEx work which will eat up profits if not forecasted and budgeted correctly. 

If you're looking to manage your own homes and perhaps start a property management company, it's a great idea to get a job at one in your area, as you'll gain a lot of useful knowledge and can ensure that you handle future situations legally, correctly, and efficiently.

Tear down a possibility or slap some paint on it and be doneSo many different possible goals so many different ‘correct’ areas to invest in

It does add to costs but I have discovered properties that look a mess - and the property manager is shocked when I say I was at the house at 123 Main Street today, and saw that X, Y and Z are totally unacceptable - correct this immediately.

Alright, here is my understanding of the situation.ARV = 3.5M (Let's be conservative)Development cost = 2M Value of the land as it is today (If I got it correctly) = 1.5M of which you will own 40% if you pay 620k for it. 

Make sure transfer information is correct and not at last minute changed to different instructions.http://www.chicagotribune.com/classified/realestat...What city did you settle on? 

The App 'Thumbtack' can be a great resource to see multiple bids and connect with a few contractor's around your area

I'm not a realtor, so it's definitely possible that I didn't get the "specific terminology" correct.