You can have great credit and still have financing problems with lenders, govt and non-govt guaranteed loans.

I spoke to a hard money lender today and they say they stay out of auctions on homesearch because they don't have a guarantee of clean title. 

Quite the opposite, lenders will not only require recourse, but also a personal guarantee from you.  

Just because the barrier of entry to an area is lower, doesn't guarantee that it will explode in coming years.

Largely due to a larger competitor ousting my bids (has a corporately guaranteed lease.)

Purchase, would be the lack of parental guarantees, or fewer than one bathroom per "unit".

You could read the recorded deed of trust to see the terms.But 2004 does not guarantee much is paid off the note.

There's a very high probability it goes nowhere for you.A free lawyer doesn't guarantee deadbeat tenants can remain in the house.

"The homeowner will occupy the home financed with the guaranteed loan as their primary residence throughout the term of the loan." - http://www.rd.usda.gov/files/3555-1chapter08.pdfI'm assuming this basically makes me a 30 year prisoner to my home unless I refinance or sell?  

I can almost guarantee you won't only spend $8,500 on the rehab if that's what you think it'll cost and it's your first one.You need a money partner.