The members have taken very kindly, have gave me their direct phone numbers and have been there for me to bounce questions off of.

this is a common theme of course on BP its pretty much every day.and you pretty much have all those that live in a market target a market .I like @James Wise cut and paste responses he does .. he nails it well and its worth cut and pasting every time someone ask the same question that has been asked 1000 times.I like to Add James that when going out of market.. also if you simply buy at the median price points of any given MSA your buying in an area were you have a lot of homeowners buying generally... so you get a mix of cash flow and appreciation and or more important you have a defined exit IE you can sell to a homeowner as opposed to buy at the bottom of the price point and the only out is to an investor..And Frankly your company is kind of a unicorn in the US.. there are not many companies like yours that specialize in reselling these assets for individual owner/investors. 

Any suggestions on these kind of problems during auction?

This one just happened to be right down the road and kind of fell into my lap.

My suggestion would be to wait at least 6 months, or a preferably a year after you close on the refi before you start looking for another home.  1 year is kind the general rule, especially with FHA, although if you had to move because of a job or something that's obviously different.  6 months you might still be ok, but if you are planning on doing this 6 or 7 times, then you are probably asking for trouble. 

A broader point, this sounds like the kind of problem that can arise when some type of personal relationship is formed between the tenant and owner.

I know its kind of vague but I feel completely stuck!

What kind of projects are you looking to do? 

I'm kind of in the same boat as @Alpesh Parmar. 

I would actually discriminate AGAINST someone trying to "bribe" me, because in my experience the ideal kinds of tenants just dont do this.