Do you think the rising taxes might eventually become a bigger concern, or do you feel the benefits will continue to outweigh the costs? 

My concern for you is that it appears that if the owner comes back, they only have to pay the bid amount + costs, not what you paid for the broker.

Basically the concern is they tie up the property, collect enough rents to make a little bit, and then just default.

I’ve been looking into coastal options and was initially considering Florida, but the taxes have been concerns. 

Just don't change your address to your parent's house, that would throw up a red flag. as long as that remains your primary and you aren't renting it out for at least a year after purchase, there shouldn't be any issues. 

Your transition from e-commerce to real estate investment with a focus on addressing the housing shortage is both impactful and timely.

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

Amassing a lot of debt and being only able to make lateral moves if I sell is certainly a huge concern of mine. 

You have hit ALL of the areas of concern that I have with using my account for buy and hold or fix & flips.

I’m not terribly concerned about the house since the layout would make it easy to survey & subdivide to make it two parcels.