And lastly what other due diligence do I need to do prior to going to the auction.

Ok, now that you have taken your initial step, below are some quick links to get engaged.Since you are focused on flips I added the below links for your review prior to getting started.I also added podcast 009 for you to listen to regarding hard money lending.

I am prior US Navy, law enforcement, and a striving entrepreneur.

You have to acknowledge FHA is for purchasing homes to be lived in, with no surprises typically that strap the new homeowner right off the bat or within the first 2 years of occupancy.The cost of this, also means you are usually not getting these home at any real discount because "the home must meet minimum standards.The alternative is searching for and purchasing a home using an FHA 203k loan, that must be worked on, that does not require the seller to make modifications prior to sale, and often are homes over looked by many other buyers.

Buying from Fannie Mae so no concessions allowed, like fixing things prior to closing to be able to pass the inspection. 

The real issues are with capital and banks are going back to the way they were prior to 2007.

The 2nd lien will be reflected on the Closing Disclosure so your 1st lien Lender would find out prior to closing. 

Hey all.. if you had at least 12 to 15 properties scheduled for remodeling/fixup, I am hearing others say they typically take out some sort of builders and general liability insurance to cover things like vandalism, d...

We do look carefully at the house prior to putting in offer.  

But I decided to just send her another factual letter referring to the prior notifications, and leave it at that.