Then the person that wins that auction will do the “equity skimming”. . ps.

Obtaining competent management was an issue, I have no confidence in the service personal in the local area.  

I know the demand is there just don't hear too many personal stories from people that have actually done it. 

Talking to someone who knows about real estate in your area or a person who gives advice on money can help choose what's right for you.

Personally, I'd never do it.

Think of it this way, your own personal credit is tied to your SSN and you can improve it by utilizing credit whether that is credit cards, loans from a bank, or mortgages. 

Also, I'm assuming I'll need to setup an LLC to keep my personal assets protected? 

Then you are ready to find properties but you  need to know how to underwrite,  don't expect a person to give you a deal.

I often see these forums flooded with people asking questions that they really don't need to ask, as their questions are very much personalized to their specific situation.I will try my best to keep this as short and concise as possible for simplicity and not waste you all's time. 

My dog needed his teeth cleaned6.