Best of luck in whichever direction you go!

If you use your vacation home personally for more than 14 days or more than 10% of the total rental days for the year (whichever is greater), some of your rental expense deductions could be limited. 

Windows are fine, some spots need drywall patches, we will do the painting ourselves).At the auction, they require a “Buyer’s Premium equal to 5% of the Winning Bid Amount or $2,500 (whichever is greater) will be added to all Winning Bid Amounts to determine the Total Purchase Price.”, “an Earnest Money Deposit of 5% of the total purchase price or $2,500 (whichever is greater) is required of the winner”, title fees, which typically cost between $500 and $1500 and are based on the purchase price, and escrow fees typically ranging between $850 to $1,375, paid in accordance with the applicable purchase sale agreement.What concerned me about the listing are 2 things:Buyer will receive a Special Warranty Deed or equivalent.AndProperty is being offered as is, where is.I am 100% new to fix and flips, and auctions.

The insured amount would be for whatever amount you specify but more than likely you are going to use the fair market value of your property or the amount you owe your lender, whichever is more. 

for conventinoal financing they always use purchase price or appraised value which ever is lower.

If you feel it will take longer to rent, then make sure it's in the addendum that they understand they are responsible for all rents due until former lease end or until unit has been re-rented, whichever is earlier.  

@Jack Yvars, had someone ask me yesterday if I would manage their 10 unit MF (I have a management company), I told him that it would be 10% or $1500 monthly whichever is greater.This would equate to roughly 60% of his free cash flow so there's no way he could make it work.For any legit and experienced MF management company there will be a minimum which almost always will be non workable in the numbers especially if you have investors.Probably more to your question though, maybe you can find one of the residents that you would like and trust to help with basics for a few hundred a month?

I just got 30 year 70% LTV or Purchase Price + renovation (whichever is lower).

As a General Rule, my Desired Profit is $20,000 or 20% of ARV whichever is greater.

Whichever will work to their favor.