Of course, its quite difficult to distill both the legal perspective and the mechanics of the auction purchase, but I've tried to shed some light on the process.

Also, I am a mechanical enginner currently seeking employment opportunities in the Phoenix area so any leads or referrals would be appreciated as well. 

Bruce explained the mechanisms which allows the trust to achieve this, and they seem plausible.

I realize that submitting two sets of plans is thousands of dollars extra in architectural and permitting fees, but if I could be completely framed out and mostly complete with mechanical, electrical, plumbing, etc. by the time the parking zoning hearing/approval occurs, then it would be worth it.Anyone heard of someone doing this?

Insurance companies that specialize in Home and Auto can handle a few properties, but are not competitive with commercial policies as that is not their target market.  3.  

If you do not have direct access to the MLS ask your broker to set you up with a broad auto-search.

Buy mechanical units if at all possible for your rentals.

What happens if some of the mechanicals go out or the roof needs to be repaired or a couple tenants move out?

You have to get the complete pay off for the mortgage (includes any late fees, interest and any other penalties), you need to find out if there is any other debt on the property (2nd mortgage, IRS liens, unpaid property taxes, mechanics liens, code violation liens etc), you need to determine the ARV of the property.

@Dan Gustavson *1031 (dang auto correct)