Lots of savings, just a little confused.

[Lukas Koube]

hello!

My wife and I have been reading books recommended on BP, listening to podcasts, and looking into real estate for a while now. We have accrued substantial savings, and closed on a deal which turned out to be great. 

We are now looking into purchasing a "buy and hold" property. However, we live in Los Angeles, where the 2% rule is rarer than a unicorn. We have identified some houses at auction, but maybe wanted some feedback before jumping into an auction scenario where we sign our names to a big mistake. If anyone has tips, that would be great!