That is something that will be in the bid, and for the rehab you'll have to do everything top down.

A house 3 houses down was for sale and got bid up and we thought it went for too much.

But, there won't be a bidding war and any fix-up you do will make the property worth more than what the improvements cost you (I hope.) 

At auction, anyone can bid.

You can also have the electrician inspect the rest of the electrical, ensure that it's safe, and get a bid for upgrading in the future.

You need to get at least 2 more bids on it.

So I bid $300,000.

First and foremost I would start by getting some more bids.

Your not bidding against HUD, your bidding against other buyers anyway.

As much as 70% of the deals wholesalers bring to title, don't close, so you could very well loose your earnest money, as well as any expenses you put out for inspection, option money, contractor bids, survey, etc.