I’m from Los Angeles and comparing prices it seems very expensive here.

Likely the reason why you got this off of a tax deed is that the prior owners determined they couldn't do anything with the land either and quit paying the taxes rather than throwing good money after bad.

The IRS has consistently shown that it is suspicious of deed transfers immediately prior to a sale. 

@Christopher Dorsey At first glance this is waaaay too complicated, you will lose most sellers unless you do an awful lot of explaining and persuading face to face.Personally, I would cut this down to 2 offers plus the realtor route if you want something to compare against.

How do you like to VR compared to other REI?

Since there aren't other multi-families in the area to compare to, should I use the average price per sq ft instead?

The moral of the story---Single Family Homes are a dream compared to Class C or D apartments.

compared to the big banks to try with first?

Have your realtor (get one if you do not have one) run a CMA (Comparative Market Analysis) to find the Fair Market Value once the property is rent ready.4. 

Greeley may be different in terms of the options there since you can still get cheaper duplexes, etc there compared to the cities further West.