$50 a month in management seems a bit low.  10% a month is a great deal and the market is typically above 10% unless you have a portfolio with the management co.      

The administrator has all the power, except that reserved by the court in your example, as they are appointed without what is called in my state "non-intervention powers".Typically in either case baring some other kind of limitation not referenced, the admin should have full authority to accept an offer before the auction, he would then just have to settle whatever contract he made with the auctioneer.I dealt with auctioneers that were both real estate agents and not, so the agreement we usually had was if we sell the property before the auction we had to use him as our sellers agent and he would take his REA commission, rather than the auctioneer commission. 

(Sorry, but I have to disagree with Dennis) contractors I've brought with typically don't go on a roof, attic, etc during a showing (as an agent I thank god for that!)

Yes, there are instances where a loan may be assumed but I am unaware of any change that allows us to use our benefit for an investment property.If you are on active duty the UCMJ is going to be much more harsh that the typical slap on the wrist civilians get for what is essentially bank fraud.     

Typical is to have the building under contract and past physical DD, just to avoid the cost/time of setting up the LLC and operating agreement. 

Typically, at least at my bank, they are going to want to see you put the cash in anyway, regardless of the seller hold back, so in this instance the 250k would just be a second mortgage, the bank would still be in first position on the loan, and still want you to put in 375k...Again, this is all depending on the bank so not every bank is the same. 

The buildings had 3 vacant units when I took them over with some pretty unhappy owners.In one month both buildings are full, rent paid on all 8 units and the 3 vacants I'm getting $200 more per month than the previous management was getting.The demand I created was high, hundreds of leads for the units, it takes some filtering to sort the good tenants out but they exist.

Loop-net is typically a waste of time.

You sort out the math on all of that, take your cut(don't be greedy) and if it is attractive enough, you will have saved your cash buyer time and that is the value they expect from you.

Please do much more research on the Sub-2 topic and get with a local REI attorney to sort out the details, prior to moving forward.