Typically we are looking for a minimum of 8% -10% cash on cash ROI for the building.

I typically wouldn't want to buy a building that is so old, but the numbers on it are looking very promising.

Lots of activity on those auctions though and typically get bid up higher then my MAO.I know how to find the owner and contact them directly but what is the process to buying directly from them prior to the auction date?

If I do the reno right away, I rent them for a year or two and then sell them off typically off market since I have quite a number of people who know me via bigger pockets and are looking for turn key properties. 

Turnkey typically means single family or at least small multi and totally optimized.

I've had rental properties in the past and rely on cap rates to typically understand what I will make.

Typically hard money loans do not appear on your credit report (unless you are foreclosed on) since they're not in the business of reporting credit, but they will pull credit as part of their underwriting, so you will have a hard inquiry on your credit report.I've always used hard money for all of my deals. 

You have to stay in your FHA probably for about a year, I don't know much about your market but if you went with conventional financing (typically 20%) it may be difficult to find homes in the $50,000 price range. 

@Michael Robbins What do you about the rent for a typical 3 bed 2 bath house in Siverado Ranch area?

On the other, the lease they had prior to my purchase is much more like a residential lease than a commercial one, with me paying for a lot of maintenance and utilities that is not typical for commercial tenants.