In order for it to be a good buy you want total rent for both to cover the mortgage PLUS vacancy (8%), CapX (10%), repairs (5%), and management fees (10%) (all percentages are just general, you can tweak as needed). 

Also note that the IRS Tax Lien does not trump a senior mortgage as long as the mortgagee took the correct steps during the foreclosure process. 

I reached out to the listing agent during the first auction, and he promised to have it fixed, but now we're on the fourth auction and it still hasn't been.This is not fair for those who are bidding, nor for the homeowners across the street who are not behind on their mortgage and not selling their house.How can I get this fixed?

When I initially spoke to the seller she stated that they were upside down on the mortgage and had out about $30k into the repairs so far including HVAC, electrical, and plumbing.

We do have a mortgage so insurance money goes to the lender which then does inspections to release the money.If it's still a desirable area it will still rent post flood.

Hello,I'm seeking a mortgage on a property that was purchased in a recent sheriff sale, property located in Union City, NJ.I've been assured that that are local banks that will underwrite mortgages even on the basis of an external appraisal (can't get an internal one because I can't get in the property yet).Any ideas on which these "local banks" may be?

Then your rent is more than enough to pay for the mortgage and other costs.

Current house hold income is 140-180k/yr with minimal debt besides primary mortgage. 

However, when speaking to my mortgage broker he told me something I have never heard before and wanted to see if anyone else has heard the same.

@Aaron Johnson1-4 family homes are FHA eligible.FHA limits are based on each county around the country and the owner's ability to pay.FHA includes mortgage insurance for the life of the loan.you can put down as little as 3.5% for a 1-4 family home.there are some allowances for adding closing costs to the loan.