sure you can back out you just lose your 2500 bidders fee and if the EM is non refundable in the contract you lose that as well.Auction . com is not a site you can play the wholesale assignment game very well at.you MUST close in the name of the entity you made the bid in.. you must have proof of funds in that companies name etc etc..

The borrower must have held legal title to the lot for at least 6 month prior to the closing of the permanent mortgage for cash out. 

You can not assign a contract to your 401k, all transactions involving your 401k must be 'arms length'. 

In the state of Ohio if the property is in an LLC you MUST hire an attorney to represent you.Once you file the paperwork, the municipal court will schedule a date as well as send out mail, certified mail and typically send a baliff to make contact with the tenant.

That is why the property must be distressed to justify the lower offer.  

It must be TOUGH to operate that way.

The end buyer must adhere to the terms of the purchase and sale agreement executed by the wholesaler.

To invest more than $12K feels like I am pushing it..I feel that I must keep the budget low and be conservative. 

I also want to point out that you MUST video or do a full walk thru with photos prior to the tenant taking occupancy.

If you must buy a SFH find one that is already a rental property with a tenant otherwise you will be paying home buyer prices.