Based on what I've heard from people actually landing deals, those guys @Alexander Felice mentions above, is that they have a pretty high marketing budget, understand rehab costs, and have a team in place ready to help out (rehabber, buyers, etc.).Best of luck.

Looks like tax lien from private seller.Do I understand correctly they've bought an $85 tax lien with interest bid to 8% and now selling it for $1200 so that's where this investor makes their profit?

@Dee Jay Understandable but keep in mind IL has some budgetary issues that they need to solve, take a look at city-data.com some cities are bigger than you think. 

Do they understand what your goals are and do they have a plan to make them come to fruition?

Sounds like a good deal with solid upside @Ben Leybovich and @Garison Clemens.Re the 50k, I understand how the inspector and the PM feel about it, but if you are getting a good deal there and want to keep you name clean from been re trader then perhaps just raise the 50k.

I understand that you can include the assignment fee in the principle price in a contract but when can a profitable buy high assignment fee be a problem for a seller or end buyer?

I've gotten bids from piering companies for other properties in the area and feel like I have a reasonable understanding of what average and worst case scenario costs look like, etc. 

(Before the auction)Location: Bayou City Event Center 9401 Knight Road, Houston, TX 77045The Harris County Engineering Department and City of Houston Floodplain Management Office will be offering a short presentation to assist bidders in understanding potential issues with sites located within the floodplain.If you are unsure of the potential challenges that go along with purchasing property in the floodplain, come to this informative session to get answers.The presentation will be followed by a Question and Answer period.Topics include: How to Determine the Floodplain Status of a PropertyWhat Jurisdiction the Property Lies WithinFloodplain Management Rules for Unincorporated Harris County

There is nothing wrong with taking even extreme risk - as long as you understand the risks you are taking. 

I can tell you broadly that a lot of cash buyers avoid roof and foundation issues due to the cost and that they favor properties that require basic cosmetic repairs.