Given the option, would you bid on an auctioned townhouse built in the 90s that appears to be in decent shape but is generally an unknown or an auctioned house built in the 60s that shows serious pride of ownership (looks great from the outside—flowers, plants on the porch, wreath on door, etc.)?
I do not mean to be flippant about this but I would NEVER bid at an auction when I can go find the owner(s) prior to the sale, shot for a deed of transfer (Quit Claim, Warranty Deed) , reinstate the the lien and then flip the house or rent it out and then eventually refinance the property.
Even in your case, I would still go after first that property which offers the most leverage - then after I could go no further with that owner, I would go to the other owner and see what we can do for him.
An Auction just does not work for me.
Just my thoughts...