I have owned the property for 2 years, I have done about $33,500 worth of rehab and raised rents almost 17% since the initial leases. 

As a new invester, when looking at Auctioned Real Estate how in depth should I go, and how should I raise  capital to purchase these potential opportunities?

Longer leases are typically more advantageous to the tenant since they have a guaranteed place to live, can’t be kicked out (except for very serious violations of the lease), the landlord can’t raise their rent, etc. 

I've been buying multi families that have some good value-add potential by light rehabbing and raising rents, and I shoot for locations that are likely to have great appreciation.

It's very possible that he can raise his rates $150 per person to cover the cost of the taxes and insurance. 

I read that you should raise rents 3-5% a year, but should I raise rent to above market rates if that's where 3% puts me? 

This is where the crossroads mentioned above comes into play:There is a competing company hiring for a position I should qualify for, which would offer me a significant raise.

@Karen O. raises what I think is the most valid point so far. 

Helped me out immensely with all the priorities and shifting time constraints that came with raising kids, 24/7 IT J-O-B and the various Real Estate Investing ventures.Also recommend checking out some others getting it done active or veteran, to include @David Pere and the Military to Millionaire community and @Eric Upchurch and the Active Duty Passive Income (ADPI) Team.

I was born and raised in Seattle, left there when it got super whacky a few years back.