Would someone with more experience be willing to shed some light on my mental block here? 

All the duct work was in the concrete on most.

I want to invest in a Sub200K area right now that will put me in about a B neighborhood with working class folks who care about their surroundings/block. 

You don't have to do this if you don't want to, however first may start a foreclosure process and eventually your property will end up at an auction block again.Assuming that your 2nd question refers to purchased 2nd position mortgage note (from the 2nd position lender) if the first lender started foreclosure and you are in the 2nd position, you can only claim any surplus from the auction since you are 2nd lien holder. 

@Damarius Gilbert my big mental block is what do i say to people that contact me from craigslist? 

Kensington is starting to explode as well -- never thought I would see the day -- but if you can find a decent block with fair pricing, go for it.

Ponchatoula DOM can very greatly over just a few blocks.

Our land first jumped in value when a professional sports stadium was build two blocks away about 10 years ago.

I live in Piscataway, two blocks from Rutgers Stadium. 

The county only does auctions once a year, in October, so there is another year before this thing hits the auction block.