I have seen evictions thrown out of court for failure to follow legally prescribed methods of service.

(Bad credit is phone bills to collection and visa often late).The exit strategy is repay the property tax and put on mortgage on an 15 year amort so it will have at roughly 75% LTV in 2 years and refinance with a MIC.My concerns are as followings:If they do not pay I will either lose roughly $20,000 assuming an exit price of $130k or own a property (it's a duplex) that would have roughly IRR of 8% on a 3 year hold in a town that I do want want to own a rental in.The borrowers have enough money to pay as things are now.

In my quick look on zillow and redfin I didn't see anything wrong with the house, my biggest concern would be the Google street view showing the home in its un-rehabbed state along with the neighboring properties. 

REOs (bank-owned properties that have already gone through foreclosure) are sometimes sold using the auction method... but they are owner auctions.Be very sure of the type of auction you are participating in. 

My biggest concern is the inevitable correction, especially in Austin.

I am hoping they will be able to address all of these concerns just like they did for most other investors. 

I do several methods of screening. 1. 

Not afraid to get my hands dirty, if necessary, but I'm a little concerned that I will get in over my head when it comes to estimating more major renovations. 

Eventually, I will be utilizing the BRRRR method when financing permits.

However bandit signs are not "legal" in my area and they are one of the top advertising methods..