I never use the term 'rich' and honestly don't feel we are. 

If they are already on an active lease (not month to month) you may need to keep the current lease terms until it expires.

It seems as if there will be some upgrading of the units, are you anticipating a sale or refinancing out of the subject to different mortgage afterwards or is that the long term debt instrument you want to keep?

Depending on the auction terms it could be that result plus the forfeiture of your deposit, or perhaps the trustee/auction company must elect one remedy vs. the other.

Refinance in to conventional loan as a primary for good long term debt.

Price is $200,000 with $20,000 down on a 6 1/2 year term (78 payments) with 0% interest.

Many sellers understand the benefits of working with wholesalers and may appreciate your straightforward approach.How to Tell the SellerWhen talking to the seller, explain that you’re a wholesaler and that your goal is to find a buyer who will ultimately purchase the property.

This county has big universities, colleges, and hospitals, and has cash flow for long-term/ mid-term rentals.

If you have a lot of equity in the property and the loan to value is low enough, you could get favorable terms on a cash-out refinance. 

That seems wildly out of touch with what this area probably demands in terms of amenities.