You can perhaps partner with someone (via equity position) in the property purchase to mitigate risk and liabilities.

I run the risk of NOT becoming the owner if I am outbid at auction, correct?

The risk is too high for you.

If you're talking about investing in real estate, usually lower ROIs equate to lower risk investments. 

Although I probably have a higher than average risk tolerance level, I do agree with @Nathan G.on not wanting to be over leveraged.

Is that recourse for me to get the good faith deposit back or is the risk I am taking loosing the deposit? 

I guess I need to determine my market, style and risk tolerance.

My risk tolerance is pretty low just starting out and I’m not big on debt, even though there are many investors that are very successful at leveraging.

Second, military tenants can move out at the drop of a hat, so there is some higher vacancy risk.

It is far better if the landlord just lets Tina out of her lease, and accepts Sam as a new tenant.Or, the landlord might let Tina out of her lease, accept Sam as a new tenant, but also require Tina to guarantee Sam's lease for the final six months (using my example) of Tina's lease term.Either one of these accomplishes everybody's goals without getting into messy technicalities that come about with a sublease.Most leases contain prohibitions against subleasing without the landlord's consent.Many leases charge a one-time fee if the tenant subleases, or is let out of their lease and a new tenant accepted.That is because the situation causes extra work and risk for the landlord.