I think you have to consider a few things when purchasing a Foreclosure or "REO" (Real Estate Owned) from Auction. First of all, you have to be prepared that the end sale price will most likely be closer to market value of the home. Second, when buying an REO, you don't usually get the option to perform your regular sale inspections, appraisals or termite reports, so you might be buying something that needs a lot of work under the surface. Third, other than certain auctions which you will most likely need a cash deposit along with a Hard Money loan, you will be able to purchase it using cash only. There are not that many REOs on the market that are considered "habitable" by a bank that will consider giving you conventional financing as most REOs require extensive work to be safe to live in.
If you're buying cash, and have the cash to spend on a property, then something like this is ideal. Otherwise, I would go for a standard sale house or perhaps a short sale if you don't mind waiting for the good deals.
If you want me to do get you some good deals in LA, call or email me to set you up with something that fits your needs. I have a big background working with first time buyers and it's something I love doing- sharing my knowledge of Real Estate. email@example.com or call/text 818-967-9626