If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

I am using the tax benefit along with the principal pay down and appreciation to offset.

Condo's usually have high HOA dues which will eat into your cash flow.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

The key is that in order to completely defer all tax you must purchase at least as much as your net sale. 

Hello,I was wondering if anyone has participated in the Philadelphia tax foreclosure auction recently and how long it has taken you to receive the deed?

If the lender originally did not believe they needed an appraisal, then most likely, something changed due to underwriting and an appraisal became necessary. 

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

This is mostly due to affordability and for potential ARV options.I had a good friend buy a property in Indianapolis off of Union Street for $60K she put $48K into the home which was a total dump and was able to refinance the home to pull cash out in 12 months.

I reduced my responsibility to only taxes/insurance while the tenant buyer does the maintenance, pays utilities and makes monthly payments to me.