This isn't something I would leave to Bigger Pockets forums the laws vary widely by state so it would probably be best to look up the law or talk to a professional in your area, (not over the internet) who knows what they are talking about.

We were very careful to disclose EVERYTHING with the buyer so that they were going in eyes wide-opened.

Finding local foreclosures is actually something else I am interested in figuring out but haven't really looked into yet - but I'm definitely not seeing them in the same place.I was really considering buying a parcel at this auction purely for the experience, but by the time they removed the ones that had been redeemed before auction day there were only I think 3 that were big enough to legally build on (and not even usable if rezoned somehow, just like 4 ft wide strips of land between 2 houses and such).1 of those was commercial, would have required tons of tree clearing and excavating to build on it an all the engineers, applications, and hearings involved with that were intimidating for me... that was the only useful one I could've afforded. 

So 6 48ft wide lots make the width of the north half of a block, and another 6 make the south.

Now my question is would it be best to spread this across a wide portfolio or would it be better to put it in one or two large investments?

When gas got deregulated in many areas of the country (quite a few years ago) many were happy because now they had a wide variety of companies to go with as their source of gas. 

Me , I would just bring it to the front corner of the house , 2 cars wide and a walkway to the front steps 

Or do you think it could result in a wide spread epidemic to ultimately change the market as a whole?

Now being a new eager investor, I may have a wide eye approach but I do like to aim high.

CSX Railroad provides the region with a wide range of reliable and efficient shipping options.Washington Dulles International, Washington Reagan National, and Richmond International Airports are within one hour of the region, and are served by 60 commercial airlines providing 815 flights per day.I own several SFH in the region and have no vacancies and rising rents.