We have looked at these loans in the past that they did have but decided against buying because they did not fit our buy box but there are investors out there who would buy whatever is left of their assets. 

I would not buy something right now just to buy something.

They send me mailers wanting to buy my properties. 

While I am normally in the do-not-sell camp, in this case it might just sell and buy at the new location.

Hii I am a first time investor trying to understand if Austin is a good market to buy a SFH and rent.

My ultimate goal would be to buy fixer-uppers to turn into long-term rentals.

This vary heavily town to town. 20% down is great if buying strictly as investment but if you have a way of owner occupying I would explore that route and apply the 20% down to increasing value of property and instead using low money down loan. 

Just one example of a market getting overheated and then right-sizing.Same is going on with syndications, STRs and soon LTRs.BP took off after the Great Recession when investors could buy almost anything and rent it out for positve cashflow.

Auction buying is a risk just is..

I actually got caught up in the creative finance bubble of trying to lock up properties way over their value just because it had creative terms not realizing that if you were to buy a property at 120% of its value you will never be able to refi or sell without paying out of pocket.