They will have to refinance their debt soon, so I anticipate these returns going to 0 or negative in Year 3.  

-Self-Employment Tax: While you anticipate the net gain to be zero after expenses and depreciation, any net income would be subject to self-employment tax, which can be significant.

Specifically, BG should remain strong due to the local demand and anticipated growth in the area.2.

The listing broker is going to try and sell you on paying a price that makes sense given the projected or proforma rental income, a dynamic that is the equivalent of how the listing agent on a SFR might try to sell you on paying a price that bakes in future/anticipated appreciation, or "look at this home's potential!" 

My realtor/PM says $0.95 to $1.05 per sq. ft. is a reasonable monthly rent for a 4 BR/2 BA property in that area, which (according to the BiggerPockets calculator estimate I did) is enough to cover the monthly payment plus the above costs I mentioned.I anticipate putting down my deposit and earnest money in the next few days. 

Additionally, if their capex budget was only forecast for 5 yr hold, and they are now anticipating 10 yrs, they may be seeing roofs, exterior repaints, other exterior repairs (stairways, railings, parking lots) that they assumed they wouldn't need to address, but now need to.Things to look for: positive DSCR TODAY, not on pro forma numbers.  

Your detailed explanations of the potential options are very helpful - my first time at a bank foreclosure auction and as I am going through the process I try to anticipate what all might be coming my way and prepare as best as I can.

Right now with the feasibility study We're anticipating about $4,000 for the SFH and $2,200/mo/unit on the ADUs, totaling about $10,600/mo in rent revenue so the initial rents look great.However, I don't know how the loan will play out.

Because I have cash to close; because I ALWAYS protect their commission/fee, and because I alway do what I say.To earn the kind of numbers the OP is anticipating takes ALL of the following1.

On an annualized basis through 2025 and 2026, asking and effective rents are anticipated to climb by 3.7% and 3.8%, respectively, to finish 2026 at $14.35 and $13.88.