So, if you put in 20K, you could set the bid up to the amount of the 100K total debt(80K existing + 20K additional) to ensure that the property reverts to you as the lender.

Tribes might even provide additional incentives, like grants or infrastructure funding, to encourage investment.

If they’re underfunded, you could get hit with special assessments.Not sure about the exact contract with the tenants, but I assume if there is any additional assessment, it would be tenants’ responsibility.Since you want to stay local and focus on cash flow, commercial makes sense, but have you considered industrial or flex space? 

If you have any additional advice please let me know!

They countered and we met them in the middle at 15% under, and then negotiated an additional $15k off during inspection, so total discount was around $150k off list price/ what they paid in 2022.

In our market it is important to make sure they are a licensed broker, carry adequate GL and worker's comp (and name you as additional insured).  

I’d recommend a consultation with an attorney specializing in these, in addition to an accountant.

Additionally, I am beginning to believe you don't live there to be the "house monitor" as this seems to be going on for a time period. 

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

Additionally, confirm the transfer won’t lead to property reassessment, which could increase taxes.