The single most important thing you MUST do is get a title report prior to the auction (sometimes referred to as a preliminary title report, letter report or owner report).The title report will reveal what lien position the foreclosing lender is in, as well as if there are any other "skeletons" in the closet of the home (i.e. federal or state tax liens).

The funds held by the attorney are conditioned on the contract closing, and seller is contacted by attorney firm with escrow details, preliminary HUD-1, etc.

It's obviously not 100% luck, but some of my wagers could of zeroed me out with nothing for me to fall back on.    

Most of the properties that would cash flow for us based on a preliminary workup we did would require some repairs first.

Finally, once all of the preliminary steps are done with getting the business legal, how would I go about financing, if we are looking at a lower money down option?

You won't see the appreciation in these areas continue very long because wage rates for the hourly folks are not following the same upward path and that will naturally keep the balance. 

You may need to start over with a new title company and new preliminary title report.

As a general rule of thumb, as soon as a tenant gives notice (or I give notice) I try to plan their preliminary walkthrough well in advance so I can also use it as an opportunity to walk through the unit and make my own checklist for repairs as well as take any measurements so I have all parts/materials ready to go as soon as its vacant!

Taking longer holding costs out of it, I’d wager I’d still be paying a good chunk more for materials.

Have your offer in the package with your proof of funds (banks like cash offers) and submit a preliminary HUD.