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If you go to the ARBA website they have a list of all the different rabbit breeds. They also sell a couple books about raising rabbits, or most of the farm stores carry Storeys Guide to Raising Rabbits. If you're going to do inside, I would do a Med to small sized bunny, although lots of folks keep large bunnies as house pets. I have mostly larger commercial breeds, and Lionheads.
I'd be careful picking up anything at an auction, Tis where breeders dump the stuff they don't want! You might get something less than healthy, or a nasty attack bunny!
I'd get a younger bunny to start, be careful about age, I've seen folks selling 6 week old bunnies, and while that may be fine for an experianced rabbit person, I would never sell anything that young to a newbie!
The bad? Rabbits poop. A LOT!
For an inside cage, make sure you get one with a wire bottom and a drop pan that can be easily emptied, those cages that you use shavings in will get smelly and nasty FAST! You can put Stall Dry or something similar in the pan to keep the odor down.
Rabbits chew. A LOT! So if you allow any outside of the cage time, make sure all cords are out of reach! You'd be surprised at what they can reach and destroy! (Flashlights, papers, cord to the computer, cord to the vacume, cord to the Playstation!)
Some rabbits are social and will enjoy other rabbits company, others will fight. Depends on the breeding and the temperment of the rabbits. You could get littermates and raise them together, but you'd have to get two females. They may fight though when they reach maturity, so you might need a second cage.
The Ugly? Did I mention the poop?
Some rabbits can be sensitive to changes in diet, so be careful what you feed them. Make sure your daughter understands that a big handful of Iceberg Lettuce or a whole carrot could kill the bunny! I do feed mine dark leafy greens and some weeds/herbs, but mine are used to a more varied diet.