A $3600/year cash flow return on a $50k cash payment means it would take you almost 14 years to recover the down payment. 

It is highly unlikely that any other investor will outbid you at a foreclosure auction to acquire the remaining half of the co-owner's half interest in the property -but in the very unlikely event that someone does outbid you, then you'll have recovered the majority of your costs, plus interest and you'll get a new and likely better partner. 

I recovered my investment in it in 6 weeks.

If you want to recover this cost, work it into the rent.

I recovered my investment in it in 6 weeks.

It's in a recovering area and rents are reasonable.  

The HOA had taken possession of the property and executed a rental agreement (significantly below market) with a tenant to recover the o/s HOA b) This rental agreement between the HOA and tenant expires at end of this year. c) Now that I own this property via foreclosure purchase, can I get this lease terminated (HOA does not have standing).

It doesn't"t look like you own the property yet I don't know if you can recover any costs with fixing the property.

I learned the co-founder of Mattel was in the hospital recovering from cancer surgery and all she could talk about with her visitors was the next toy she was going to develop as soon as she was released.I also learned that entrepreneurs are calculated risk takers.

You will make a mistake, you will recover, and you will be okay. :-)I'm glad to chat more sometime.