Keep in mind that buying from a foreclosure sale or an off market deal where the seller (not the property) was distressed is not a considered an arms length transaction.When you make improvements to the property, known as rehabilitation or renovation; you necessarily increase the value.

To make the deal more attractive, I am willing to offer a first position if the lender/investor can ensure closure by February 9th.

Multiple billion dollar companies are investing into our area, such as Intel, Google, and Amazon, due to reasons such as lower costs on land, great tax abatement opportunities, and an attractive cost of living for employees. 

Will need to increase reserves going this route to account for future repairs.

My understanding on this is that if you build it unpermitted, the benefit at that time is that your property value likely won't increase because the square footage is not assessed to increase the value of your home and therefore the property taxes.

How do you determine if a cap rate is attractive for an investment property?

Here's a breakdown to help you make an informed decision:Pros:Affordability: HUD homes are often priced below market value, making them attractive to budget-conscious buyers.

Paying about 200 to 300 a month to essentially just "have it" and let it appreciate and see what happens.my short term goal is to increase savings cash assets and equity in next 5 years so i can buy a couple of investment properties that provide extra monthly income while increasing in value.

Her response was something along the lines of wait until mortgage rates are in the 5%'s and home valuations could increase by as much as 10%..When/if that happens, her argument is that sellers will be willing to relinquish their 2-3-4% rates causing inventory to increase and buyers will flood the market. 

Ex: once the value of the property increases by $200k according to X estimate or set of comps, we will sell the property.