So the strategy seems to be buying 100 liens at low or no interest and maybe a tiny fraction don't get redeemed and you have a huge windfall by acquiring the property. 

(Yes, I know that REI is a job, at least until you are a fully automated big dog, and I know that I'll be starting off with tiny streams... but where do you think the Amazon and the Mississippi start?

The tile itself was inexpensive (sorry, I don't remember the per sf cost at the moment, but I can say that we went to a discount tile retailer for bathroom tile, and great small quantity closeouts were available for huge discounts (like way cheaper than home depot), and we used home depot 12x24 tile for the kitchen floor for a few hundred bucks).The other big expense would have been the roof, but we were able to leave that one alone (thank God!). 

Usually homes are under contract by the 2nd price reduction.Knowing this trick has been extremely valuable to me and my investors in 3 ways: (1) It has saved valuable time from submitting low ball offers that could never be considered. (2) It has provided leverage for many accepted deals that have been just a tiny bit overpriced, closely competed for, but all the other bids barely missed the percentage mark. (3) When the bidding period changes to a daily bid, I submit a bid as quickly as I can and if possible on the same day that the bidding period becomes a daily period.

Perhaps focusing on quality as opposed to quantity of contracts will allow you to make better margins and move your contracts with greater ease.

Wholesale - the selling of goods in large quantities to be retailed by others.  

I also recognize that the vast majority of PM/realtors that are on here (which is a tiny percentage of the overall) are the exception that proves the rule.I was speaking as one (smaller) self-manger to another.

@Ari LaskyReturns fluctuate based on a number of factors (unit quantity, purchase price, occupancy rate, repairs required, contractor costs, etc.).

My wife and I are currently living in a TINY apartment with our 1 year old baby girl, and are expecting another.

I have some tiny baths and we have mounted wall cabinets to make up the vanity space and used pedestal sinks for a less tight entry, So if you lose a vanity you need somewhere to put stuff.