If you are just investing don't fall asleep on your money, that's the only advice I would give.By this I mean always be vigiliant about your money.  

I would start there, which would mean at least getting some advice from an attorney.

That doesn't mean you shouldn't ask for the seller to make a concession.

From what info you posted, i think it should be a great deal for the right price, since everything is gutted out, electrical and plumbing is done, then that mean all you need to do is floor and wall and the 2nd floor minor work.  

This would mean the Bank would see the purchase price as $300k, so the seller would need to come up with Downpayment plus $250k. 

This can mean you must join their association, membership inside scoop.

Can someone explain to me what this means?

For the most part that is true however, after reading a book called "The Deallionaire" by investor John Lee from Missouri (He was a guest on the Jennifer Hammond show), He talks about selling properties that he has bought  for less than $1000 using both conventional and unconventional means such as advertising a property via craigslist, social media marketing or selling through realtors and word of mouth.I'm mainly looking to venture into North Carolina, South Carolina, Georgia, Texas and possible New Jersey for this.I have heard both John Lee and Ankit Duggal (A guest on Bigger Pockets show) mention buying into tax deed/tax liens AFTER the main auctions by simply requesting a list of properties that were still unsold. 

But I understand what you mean.

Three years later appreciation has given me an additional $70,000 in equity, my tenants have paid down my debt $10,000 on top of that.