@Larry Wilson before you come to a final conclusion of what materials you will use.

Thanks a lot, that is exactly the same conclusion I was coming up with myself.

"Original and adjusted sales prices must bracket sbejcts value conclusion".

A lot of conclusions are being jumped to maybe based on how I initially explained it, its fine.... there isn't anything illegal going on.

I have been trying to figure this out and never found a conclusive answer, for This type of financing, does the owner not need to occupy the property?  

The reason I came up with this conclusion is because when interest rates go up it will make it harder for people to purchase a property for the price range they are looking for, in essence it will push people to rent.

The ultimate conclusion would be for me to try and save about 10,000, then go and bid at an auction. 

I wouldn't assume either but rather seek out some local investors and see what they are doing and how it is working (or not working) before you jump to the conclusion that it is too expensive and try to make things work in an out of state market that you are not familiar with and will need give up control to depend on the kindness of strangers to keep your best financial interests at heart and make or break your investment.

According to this post, for a $180k property, you'd be paying almost $19k in total FHA insurance costs as opposed to $5.1k for conventional PMI.My conclusion is that, unless you are extremely pressed to buy a house before building a good enough credit score and downpayment, you should absolutely wait to get a conventional loan instead of going for an FHA loan.

What is significant is locking in the price and then refinancing when rates are lower in the future.”My conclusion is that waiting will cost you more than purchasing today.