There are some real advantages w/scale and a concept called forced appreciation (value add approaches) that make large apartment investing attractive.  

In short term probably May easier to have my partner carry the paper and finance the deal  

@Abdul Azeez, I think that the problem is that you are stacking the deck against yourself trying to do all of these things on your first deal:1) Purchasing the property from an online auction site / bank, which is notoriously tricky even for the experienced investor, due to their proprietary contracts and minimal due diligence period and strict deadlines.2) Working with a new contractor that you haven't used before, or seen their work before, and who may not be used to dealing with investors.3) Trying to get conventional financing on a property that has a short closing time and where the mechanical systems cannot be tested.4) Working on your first deal by yourself instead of partnering with a local investor who can guide you along, or at least a mentor who you can turn to with questions.My advice is to make it easier on yourself by considering buying a property with a standard contract and longer due diligence period, network with local investors who can provide you contractor contacts and also some guidance, and consider using private financing or hard money instead of bank financing.In my opinion, buying from the online auction sites is a more advanced strategy that you can use once you are able to ballpark construction costs yourself and/or you have a trusted contractor you've worked with before and/or you have private financing or hard money set up so you can close fast and/or you can purchase the property without interior access and hope to get lucky in terms of condition (but still buy at a price where you are comfortable doing a full rehab if necessary without losing much money) and/or you are familiar with agreement of sale contracts and closings in your state so you can assess the risks of using the bank's seller-friendly contract.You're already doing the right things by asking questions on this forum, and taking action.  

As far as I can tell there's no way I can defeat the redemption (short of buying the redemption rights for several times the auction price), but if I have to move out 2 days after I receive the papers I better start packing now!  

Both markets seem attractive.

I do not think the property numbers are attractive enough.  

The property would have to have some kind equity or be so upside down the bank would do a short sale otherwise why would the owner sell.If you have a way of identifying the property I would give it a try but don't be surprised if you have to kiss 100 frogs to find the prince.

So in short, I thought this would be a good place to start.

@Daniel FierrosThe rules for short term rentals in any market are in the spotlight because of the success of AirBNB.

For the short term we are looking to flip a house(s).