With just the three bedrooms, you can avoid parties but still make some money if you furnish a bit more upscale. 

Some will be sight unseen, some will be third party mediated and those "auctions" always have ghost bidders to get to the reserve so you will see a property come back again and again.What was your goal in going on here?

They are NOT intended to save you money and you are adding more parties into the process of making repairs which is always more hassle. 

Because it feels like you have to secure a seller and buyer essentially at the same time, having those conversations and almost playing ping pong with both parties is NERVE-RACKING for me."

The IRS as stated that an investor may not use a 1031 exchange to purchase property from a related party when the objective is primarily to avoid tax. 

I have a 3 party who I have used since day one $45.00 to do background  so far so good couple bumps nothing too big .Last place they lived is BIG make sure you don't skip any thing that should be done .When they are serous take a picture of the DL of all folks on the rental just like a apartment would do .

I met Veena Jetti at a pre Subto master mind party late last year and several other investors along the way. 

I tend to think that RSO applies, even if all parties agree.

In case the bank or a 3rd party wins the auction, do they have to give tenant any notice before they are asked to move out? 

I also need information about reliable companies that can be used as a third-party for the exchange.