typically, although I haven't looked closely, counties set the opening bid at the tax amount owed. 

Unlike qualifying for a typical mortgage where it's all about income and credit, in this arena it's all about experience.

This typically is investors.

However, it is indeed a way for those who are just getting started and needing to build a capital gain to do so in order to pursue other types of REI .

If I gain experience in the construction industry it will give me a wealth of experience and knowledge that I will lean on to reach my REI goals.

Underwriting is typically in a far off place, and I hear over and over from realtors, that the bank drops the ball at the last minute.

Our goal in real estate investing is to gain a substantial amount of passive income to allow us to work fewer hours at our jobs and more hours together doing the things we love. 

At 2% Net Cap Rate - to make 100K a year - the property has to be ~5MM.And I'll need 25% of that as down payment - 1.25MMThat's not easy for me - nor very fruitful.So, I wonder whats the point of this.In contrast - if you look at flipping houses from a foreclosure - its not uncommon to see routine gains like 50K on a 500K asset.

We have tenants we gained with properties like that currently. 

The Irvine/Newport markets typically withstand drawdowns very well, much better than other cities.