My question is, for a first time flip should we flip a retail home or a forclosed / auction home?

We are able to pick up handsome profitable deals pre-auction or at auction.

My guess would be anything that has been on the list longer than 2 or 3 auction cycles is either vacant land that nobody wants or the taxes are too much to make the property worth what the county is asking. 

We were not hard hit, nothing like Los Vegas, but I saw a lot of rentals auctioned at the courthouse steps.

Any of the comparable properties I found were sold at $30,000, This one is in auction for approximately $41,000 right now (minimum not yet met). 

Can I still step in an attempt to help the homeowner avoid foreclosure or do I need to wait for the auction process?

I see this auction. 

(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

We just bought another house on auction, and we aren’t sure if we will be hiring the full time employee.

What do you find the top 4 biggest challenges with buying properties at tax auctions?