Factor obtaining possession into your numbers.Fourth, if nobody else is interested or bidding... why is that?

Assuming they don't vacate, we will have to evict them once we take possession. 

If she returned keys to you,, that's the date she gave up possession.. 

The tenants rental property will cover all of their personal belongings and since you are using a PM company I would assume you will not be keeping any landscaping equipment, tools or possessions at the premises to need that much coverage.

You can go to jail for life in MI for possession of cocaine.

3- If someone holds a lien on a property but it is not recorded in official documents, what is the legal standing of such a lien if you win the auction and the property comes in your possession?

Is it possible to purchase REOs soon after the loan servicer has taken possession, but before it hits the general public?

As a novice in this market segment, I have ZERO issues with partnering with a more experienced investor, and giving up a sizable portion of the deal in order to acquire it, and then refinancing them out once I am eligible to do so with the property in our possession.

You can ask them but they are not requiredIf they are in violation of the lease agreement, you can give notice to start the eviction process immediately upon taking possession. 

Then if you disappear or mess up the deal, they just go record it if they need to take possession.