My concern is that I am competing against all cash buyers and since this is REO that I will be at a disadvantage due to my financial contingencies. 

If it means for you to invest in a distant market with extra effort, keep in mind you compete with local investors who live there.

It's very difficult to compete with a cash offer for any type of buyer with a loan, but still submit your offers on homes you think are a good fit for you.

Alternative asset capable IRA plans are a very specialty niche and are served by specialty players. 

Stuff that might work for 1 deal yet does not scale for larger or multiple deals run together.If you want the partner to do something, it better be material to the success of the project and it better be something the person is competent enough to execute.

Even if you hire a competent property management (PM) agency, the odds of making any substantial profit should be weighed against the risk the tenant will trash the place and leave without paying, costing you thousands in expenses to repair and lost rent.Especially if you don't plan on being in the same city, sell it. 

You see some big players comfortable with a 4,6-8% COC vs 12-16%.

In terms of infrastructure and general home knowledge I think I’m pretty competent, but in the accounting, investments strategy/lender side I am not.

Just make sure you have a competent agent who can negotiate the subject to sale well with appropriate deadlines so you don't lose your earnest money in case you can't sell your first home.....Side note, we tell our clients to NEVER put down any hard earnest money unless they are desperate.

Would you let them know you have competing offers and see if they are willing to pay more?