We are also open to other areas, as we plan to utilize a property manager to handle the day-to-day elements of the home.We currently have $80K saved, and can probably get to about $135K by May of 2022 through various income streams.

I recommend seeing if you have the ability to house hack in your area first, which is how most multifamily investors get started.I also recommend seeing what wealth you have that can fund your real estate transactions.

Self management also gives you the ability to pay close attention to the details that have the biggest impact on your cashflow.

If they leave, you then have the ability to renovate the unit and get top market rent for it.

Like you say, it's all about perceived risk and your ability to handle it....

I am confident in my ability to understand the numbers and risk, but less confident in how to actually execute.  

Other benefits of new construction included a home warranty, all new appliances, and ability to have all your properties match.

I think the #1 most important thing to do is get a grasp of your financial situation and how that is going to impact your ability to acquire a property. 

You may be able to redeem the judgement prior to the sale- meaning you pay off the entire loan principal plus the back interest and fees before the date of the sale (and I believe you would pay that to the court, not the bank, then the court would pay the bank), but it doesn't sound like there is a financial ability to do so. 

If we did win the bid do the current owners have the right/ability to stay in the house?