I ended up getting out bid and lost out on it and my question is would it be smart to start offering a number closer to market value as long as the cash flow is good and the property is turn key or Keep trying till I find one under market value for appreciation.

At some point all Investors and Broker/Agents should know that the smart money, is always someone else’s money.

Should I wait until I have cash saved for a down payment or is it smart to take cash out of my current building for a down payment? 

It takes skill and guts to 'catch a falling knife';  it takes courage to make a smart decision when everyone else is in a panic.  

I'm just curious to what the smart, helpful, experienced BiggerPockets community thinks about this as a way to get a good deal for me, especially starting out. 

Done correctly they are safe and smart and will likely net you more at the closing table than a traditional sale.As a landlord, dealing with tenant/buyers usually means less tenants and toilets to deal with. 

Also, I’ve never believed it was smart to be buying courthouse auctions at a distance....the local investors have much better local knowledge than you.....if you outbid them, there is likely not a good reason for it.

I agree that a smart long term investor should focus on cash flow and that's where my primary focus is.

You Might find a lender who would let you in with no money down, assuming your seller would take her $250k as a Second mtg, which of course wouldn’t be wise for her.You’re going to get suggestions to propose a sub2/ wrap mtg for the whole $400k...again, not smart for the seller.How much Do you have to put down?

It is smart, easy and low risk.