If no one outbids you, you don't get your costs back, including legal, public notices, auctioneer, and the cost of taxes, insurance, municipal fines, and maintenance such as heat and snow removal while you wait for the auction. 

Mike,Welcome toBP and the heat of the southwest. 

The smell equals that of underwear that has been worn for 2 weeks straight in 90 degree heat with a constant Taco Bell diet.

It gets insane heat and moisture too.Regarding zoning, I have another house here in Denver with a garage 1 foot from the property line that I just built last year.  

Our original intent was to use it ourselves to escape the heat in summer, and possibly rent it out on websites like VRBO or AirBnB. 

Hope the heat isn't scaring you off yet!

The floors already have heating.

I include the utilities in the rent, which can be good with good tenants, but I've had crappy tenants who will leave heat on and windows open because they can.

In addition, the regular maintenance has helped me avoid those emergency calls about heating/air.

He figures (& I concur) the amount to fix up the damage wooden floors, replace the pipes, & an old heat pump will cost him about $15k.