Something that I try to note with clients sometimes is, 'legal' separate lot status, 'mapped' lot status, and 'tax assessment' status are all different and applied in different situations.

Feel free to send me a DM I can assess this better on a quick call & make some recommendations for you.

The rent will offset your holding costs in the meantime and you can ride out your agreement with the homeowner until at which time you can assess the market and decide what you want to do. 

The day prior to FMOC action, I called LoanDirect to assess rates and costs.

The HOA may have a monthly fee but you can often get hit with a "special assessment" that wipes out any cash flow. 

If you can make repays and the numbers still work then your good.You can walk the property and look at pictures for big issues but you should get a property inspection done and bring in the appropriate contractors to assess and estimate repairs for any issues. 

I agree with your assessment about positive employment trends.

There may be some slick people on BP with a formula for you to calculate rehab cost, but to be safe you should really get a GC or two in there to assess the situation and provide you feedback on potential costs. 

Properties have not been assessed since 1983.

Sure, put in the money it takes to keep the place running day by day (i.e. operating expenses), but avoid major capital upgrades until you have title.In the end, it's going to be the Buyer's responsibility to list the risks, assess the likelihood, and take reasonable preventative measures.