They just can't understand we would lose money if we rented it out to them long term.With that said, there are a ton of pitfalls.

You may want to hire a smart pro that can not only optimize your asking rent, but save you from many other landlording pitfalls ;-)

Does she know that in NJ for foreclosures that trade at sheriff's sale auctions, these are the requirements:1. cash only-no finance, 20 pct down at time of the auction2. as-is transactions3. no inspections4. no viewings (unless it is also listed as a short sale at the time)5. you are responsible for holdover tenants and holdover homeowners6. auction docket is not fixed, most properties get continued between 4-8x before selling at auctionThese are just a few of the pitfalls with buying foreclosures to live in.

The GC is very interested in partnering with us on this deal, but we've never done this before and are unsure of the pitfalls we might be approaching.

I was wondering if there are any pitfalls to look out for with national as opposed to local companies?

What other tax issues / pitfalls should I look out for / be aware of if this is something I look to do? 

I am trying to understand what exactly the process looks like after the buyer wins and bid and what some of the pitfalls are...

Any pitfalls?

Investing out of state is viable but make sure you educate yourself on the potential pitfalls prior.

They will be able to go over all of the requirements, pitfalls, and minor nuances.Best of luck!