I have heard multiple stories of people who bought performing to get to non-performing and didn't even receive a single payment before they became non-performing notes bought at a premium so keep that in mind as well.

@Riley Blake  FHA does require upfront MIP (mortgage insurance premium) of 1.75%. 

For those familiar with this enclave, what do you think these could rent for, and what premium do you think that it would add to the value of the property?

I was able to find a middle ground and ended up going with the broker in Ohio who was 1) most responsive and 2) had the best premium for the coverage.

Could I sell the note at a PREMIUM to the face value? 

At the end of the day, the overage is minimal considering the level and quality of the product we are getting.Pricing on As-Is UnitsThe units that are being renewed are getting $90 - $190 premium to in-place.Pricing on Renovated Units Two 1x1 units have been leased at $825, which is our ask.

But, he says he's ok with that as his unit is "premium" in both views and amenities, he makes enough income and his place isn't trashed.

Great place for cash flow if you're willing to acknowledge that you may be unable to exit the investment for any premium. 

There may also be a “Buyers Premium” associated with the auction - generally another 5% that you have to pay based upon your Winning Bid...so again, if your margin is thin, be aware.  

The premium looks lite to me.I'd firm up that estimate.