It's kind of sad to loose the opportunity.

This would be the ideal situation in my mind but if my cash flow is only $250 a month to begin with I would then in theory loose all of my cash flow.

Lastly, is there any contingency if you win the bid that allows you to do an inspection or at a minimum walk the property prior to getting legally bound to a sale?

That compensation comes with an expectation of a certain level of professional courtesy and work to be done by the buyer's agent - such as:Don't have your buyer's call me directlyThe buyer's agent should handle all communications, showings, offers, contracts, and due diligence for the buyerThe listing agent works for the seller and is legally, contractually, and ethically bound to represent the interests of the seller and get the the highest price possible for their property.

You don't want to loose a friend if something goes south. 

Is it a good Idea to advise the seller I am a wholesaler, my concern is that I don't want to take the chance on loosing the chance to obtain a sellers contract.

It could also mean there's a loose wire connection at one of the boxes.

Something is bound to come up that neither one of you can handle alone, but could handle together by pooling your resources.

I know some California investors in that same area that bought new, will rent them for two or three years loosing a little bit each month and then plan on selling them and cashing in on the appreciation.

We're  just trying to get them out asap so we can we can move on and they can  be legally released from their obligation to pay rent since they've already moved out but are still bound by terms of the lease.