"The bidding starts at <60% FMV>"4) After you get some bids on Sunday and the open house is over, you start going through the bidder list and calling everyone bu the highest bidder offering them to outbid the highest bidder.5) You repeat step #4 until you bid up the price as high as you can.6) Meet with highest bidder and take a non-refundable deposit (specify this as a "condition" of the bid auction). 7) Close.The idea here is if the highest bidder flakes out, you still have a list of other bidders, everyone just $500 or so lower than the highest bidder.

I am also expecting that they will not bid on the property themselves if hired. 

Really wanting to bid on a property owned my Fannie Mae but it’s not on market until remodeling is complete.

Once the development phase is completed minus the last part which is pull permit for the build, you have a building blue print in your hand, you can send the site plan and building plans out to your local builders for bids on the build.

You're perfectly capable of throwing some aggressive bids that make you comfortable entering and as you see one that fits, maybe up the ante for one that fits all your criteria but right now you can operate with no pressure regarding that. 

Based on the website it seems pretty easy to bid, so I am not so sure that I would not get a property. 

Capex can often be handled from the front end with inspections and contractor bids, but remember even a brand new house will wear out over time and need replaced.  

The question is how is the profile of the state in regards to landlords, growth for the economy, supply of land, and is this house attractive enough on the exit to garner an aggressive bid if you were to sell in the next up market cycle in 7, 12, 15, 21 or whatever years?

Never choose the cheapest bid.. or you’ll pay..

When you buy a (real) "foreclosure" at, for instance, a trustee sale the only requirement for the sale to go through is you need to pay the winning bid price in full.