@Albert Gallucci this is the 64,000 question and I tend to agree with @Jaron Walling it's really not that cut and dry. 

Two of the kitchen cabinets were also cut in half.

I'm thinking I can get a nice purchase price if I under cut the banks by 1% and offer 15% required down as opposed to the traditional 20%.

Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

We look at things like safety, unemployment, schools.

Public has little desire to see them cut and GOP has no desire to increase funding for this. 

Some banks and lenders will cut you off at 6-7 even if your DTI is below the normal percentage.

The foundation was already approved, permitted and finaled years ago for a 3400 sf house, and its solid and I won't be building directly on the overhang edge; but rather back away from the edge a few feet to prevent any load issues all the weight will be on the longer sides of the existing footing.

If they seem agreeable, then you can ask if they would prefer to cut the cost down the middle or would they prefer to purchase the supplies and you will assume the cost of labor to install it. 

Just looking at Zillow I’m having a hard time making the numbers work between prop taxes, insurance, management on 20% Down vs cash currently earning 5% (albeit that 5% going away soon with rate cuts)  To be completely honest, there's not much right now that will give you decent cashflow without getting into a full rehab.