I will have continue to test my theories and results, but it's a pretty safe bet.

Ask them questions, who is the seller, what was the problem, how long was it on the market, how can you reach the sellers, let the agent know that you'll pay them a fee if they help you buy the property before the auction.....this will eliminate your competitionbe pro-active, do your research, don't just show up....you need history of the property before you bid, do this and you will succeed, do not do it and you will over-payvisit the property before the auction sale, try to find the owner, ask questions (sometimes you can stop the auction by making an offer to buy directly for the owner (always check the local laws about buying directly from owners in foreclosurs, you would be safe by using an agent, called arms length agreement, you pay the agent for this service.talk to the neighbors, find out what's going on, the history of the property and the ownership, neighbor usually love to talk and will give you some great insightsIs the house vacant, for how long, can you get inside to do an inspectioncheck the public records, what liens are on the property, what violations, back taxes, water bills etcif buying directly form the seller (using an agent), make sure you have a lien and title report to protect you from buying a property with other liens or judgementsOther ideas for you that may help you understand the auction business better:Contact auction companies (always talk to the principle of the company). 

And the first part, I would agree with pretty much any investor except me; I DID have to do that deal, or else we would still be looking for that dream property that made good cashflow and made the wife feel happ and "safe". 

Never done any of this and deciding to do it on my own I'd just assume scribble it on a napkin but that doesn't seem like a safe idea, for myself nor the seller.

Thanks and have a SAFE and HAPPY New Years!

I am willing to buy single family homes pretty much anywhere in the US as long as the cap rates are high, the construction is CBS, the neighborhood is decent (low crime/safe) with reliable tenants willing to live there, and the properties can be managed by a good, local property manager.

So, I told the tenant the professional company told me that cleaning that area should be safe for you.

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.

The safe way to go about this is to put down anywhere from 15 to 25% down and have your loan officer write this an investment property.  

You want it to be clean, function, and safe at minimum, anything above that you want to ensure you'll get a decent return on your investment.