If you plan to sale the property in say 1 to 5 years, then there is no real need to worry about building long term equity as you will simply make your profit when you sell.

Good point.Please do not interpret my suggestion as a tax avoidance tactic, simply a way to get some real estate exposure, other than in the form of owning.thks.

because people simply do not do their own homework.

If not then your 6% building is simply overpriced and/or the 12% building is underpriced.The rule of thumb that I use for cap rates is that I want higher than the mortgage rate I pay for the building.

If I bid and win this auction, say I got it for 10,000.

Now im wondering if it would be smart to start with the listing and selling game and then move onto investing further down the road once i have a few years under my belt or simply dive right in and learn as I go.

Because where "I" want to live is becoming a determining factor in what properties I'm willing to invest in while if I just decide to rent, I can simply invest purely on the numbers.But the real question is do the benefits from being an owner tenant outweigh the expansion of my investment opportunities?

Win or lose..

I simply would like to suggest, that you do a little research before presenting to your buyers.

Do you simply lie and say these homes are for your primary residence?