Quinn:A true RUBS (variable cost monthly depending on usage) must comply with local ordinances and typically can recover only a portion (e.g. 80%) of the utilities.

RCW 4.16.020If the existing fences have been there for less than 10 years, then you may be able to recover your land.   

His agent said he was told he could fight it but I think in the end he has just given up so that's why he fled to another state.I doubt he will try to sell to anyone else, he's a bit mentally unstable but at the same time, I would like to protect my interest in the property if possible, or at a minimum be able to recover my earnest money.

with no further impact to your credit score#2 - your credit score WILL RECOVER with healthy credit habits. 

When it cashflows you can hold it forever, or at least until the market recovers.  

A low LTV only makes it easier to recover your assets in a foreclosure or other troubles.What protects you is lending to others with integrity who know what they are doing.

How long will it take to recover the cost of adding that value?

My first property was a failure due to different reason bit I find it hard to recover still.

I know people are still recovering from the RE crisis we had but there are also people who bought condos CASH @50k and now they're worth @100k.

According to you, the price of the house will increase from about $175,000 to $250,000, a $75,000 increase. last time I checked, a 5:70 ratio (since you have to recover the $5,000 spent) is the same as a 1:14 ratio.