From a lender standpoint I think the main areas of concern with auction properties boils down to access.

I am a little concerned that they are newer, and also the wire thing someone mentioned.

So I am less concerned with that one at least for the time.I enjoy researching many things and solving complicated problems, but figuring this out has not been one of them.

Last thing I will leave you with:Ultimately, the best answer is always to triple-check everything.

Our first accepted offer was a 320 unit deal that we contracted, put up non-refundable (yeah, I know) earnest money, and thought we had our financing and money in place to do the deal.  2 weeks before closing a major (several million) partner pulled out leaving us short of the funds needed to close. 

True although the fires this year just adds to the reasons to leave California (excessive taxation and regulation, overbearing political correctness, downtowns littered with feces, etc.).

That leaves me with 5% to come from my own pocket.

Now were back to a mare normal world where a person has to have that skill of forecasting, analysis, ability to "read the tea leaves" for where it's all going and if todays acquisition makes sense. 

It's not enough money to be concerning yourself with better ways to re-invest the funds.

My only concern would be whether or not, you’d be able to cash flow.