Stay away with trying to get it under FHA if you already own a primary it will get "Red Falgged" in underwriting. 

But right now, I wonder if a total newbie in this should really be trying to get a small loan (50k) to purchase two house around 60k each?

Also seen the opposite where decent lot, decent price, looked clean, but when I got there must have been $100,000 in cleanup needed with all kind of trash and junk on that lot.I've never been to Harris county auction, but from what I understand they have multiple auctions and maybe even different locations depending on the precinct, so know where to go if you can.At one time there was a lady that would offer orientations at Harris county maybe 1 hour before the auction starts.When you are ready to bid, know how to pay. 

Depending on the auction terms it could be that result plus the forfeiture of your deposit, or perhaps the trustee/auction company must elect one remedy vs. the other.

They want to say "yes" and will try harder to say "yes" when you need something from them. 

I'm an investor in the making, I'm trying to build my marketing materials and I'm having a hard time thinking of what to put on my credibility packet. 

The rents that the seller pays (discounted) are going to trip up trying to refinance out of hard money as any lender will use the lower amount to qualify thus cutting your loan down to be able to make the rents cover PITI.

We have try to accommodate all the items she pointed out, but this seems to be unnecessary.

AND try to find a market where you do not have to compete as much with 2nd home demand - a place where people go to vacation but is not top of mind for a rich guy's vacation home destination (ski town, lake house, etc.).If you are asking for the secret market that returns 20% cash on cash without any renovation or difficulty, that doesn't exist.

It can be a slippery slope but try to find the cause first.