After doing my research, I had identified this property as a strong foreclosure candidate, which is why I felt comfortable with the cost of the surplus bid.

I would say it is b- or a strong c+.

Do you have a checklist of things that you would recommend following in order to lay a strong foundation?

Can be more aggressive on future properties.Reinvest income to acquire more assetsWithin 2 years, purchase 5+ propertiesThe rental market in these communities seem pretty strong.

Is it worth considering <5% cap rates and <5% COC for a strong future position?

I will say though, you need a strong "why" and to be committed.

But if your current portfolio is not strong you won't fix it by adding debt. 

It's completely dependent on negotiation -- between the operating partners and the capital partners.Typically what you'll find in similar situations is either an LLC or an LP taxed as a partnership with a strong operating agreement in place that spells out income/loss allocation. 

I would strongly advise you pass on your parents property, many more fish in the sea when you are actually ready to invest. 

Know your numbers and if the numbers work and you think/know it will be in a MO situation, make a strong offer from the beginning.