My concern for you is that it appears that if the owner comes back, they only have to pay the bid amount + costs, not what you paid for the broker.

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

Basically the concern is they tie up the property, collect enough rents to make a little bit, and then just default.

One of the BEST posts I’ve ever read concerning advice + information. 

I do get you having some concern maybe going into winter in WI and wondering if tenant activity will be there to fill a vacancy (with lots of leases and moving around happening spring-summer).  

I’m not terribly concerned about the house since the layout would make it easy to survey & subdivide to make it two parcels.

If you have one abuser, it won't affect everyone else systems.One thing not mentioned that could possible be a concern is were they are placed. ie. are they all positioned well for inspection and/or replacement if need be?

If cash flow is a concern it's a big one usually 

I think it was on another post about how someone paid for a guru program and the guy never addressed her concerns about losing money. 

I would love to talk to you about financing options as we help many investors, beginner and experienced, with funding that utilize the BRRRR method.