My JV normally has my profit first and the rest is split 70/30 in their favor. 

I like to approach homeowners as just a normal person like them, trying to buy a property.

Even if you have positive cash flow in a normal situation, what happens if, because economy repeats 2007/08, several of your properties default on rent and it takes three months to evict them?

Started talking to a guy at my gym the other day, had seen him several time, super normal guy.

Do you think you net more doing the home as a vacation rental vs just renting it normally? 

We have similar situations here in Oregon... people paying 250k for a foreclosure to make 10k or sometimes nothing.. or just buying it to hold for rental and appreciation. what your describing I would say is more of a normal foreclosure market in a market that is healthy and good for homeowners... not necessarily bottom feeders like we all are..

Is there any way to use the profits as regular income to live off of or will it act as a normal retirement account and I can't truly use the money until 60?

Tenants won't normally spend that kind of money unless they are responsible and it's easier for them to swallow than a $500 non-refundable up front.

As far as your assessment of value, the assessed value is NOTam indicator of fair market value and in Las Vegas (Clark county) normally is off by as much as 40% or more.  

Normally written contracts are strictly construed, but if they are vague or ambiguous then verbal supplements are involved and you have no knowledge of what those are.I do have some words for the advice of @John Thedford ...