Effect of seller's default on loan secured by mortgage or lien on property If, at any time prior to the expiration of the time period in which the option purchaser has a right to exercise the option...

Most title companies can give an "investor/bulk" discount if you ask for it.Elanor Ortega at Title Security is very good (you can pm me for phone number). 

Do you leave security bars on widows and doors on your flips.

Also, I opened a business bank account to hold security deposits & to separate personal & business funds. 

With that comes confidence in what you are investing in giving you a sense of security.

Holding costs is currently at $1,800 (city registration, insurance, security).  

The Financial reits are immune to the crashing commodity prices we are seeing today, mortgages are secured and much healthier today due to rising property values than they were during our last mortgage melt down 8 years ago.

High interest rates secured by real estate make a great, safe high ROI.

I have no experience on ever using this technique but I was wondering has anyone tried this or are there any flaws in this logic?

Read up on both wholesaling and geographic farming techniques and work a "farm" area by looking at public filings like divorce, probate and notice of default.