You bet, happy to help.  

@Aaron DesimoneI bet the 2 houses share the same septic tank. 

This condition has probably existed for many years and I bet neither the fence or shed are permitted installations.

I'm in Florida but your best bet would be to always contact a title/closing agency.

I wouldn't call them hot markets unless you're physically here on the ground.

You bet.

Your best bet is to work with a wholesaler and/or make sure you are only going to the Sheriff's auctions for worthwhile properties. 

Then you inspect house, if no major damage and all the junks gone give the the $$$ and change the locks as she walks out the door..The cost of eviction is about $350 if would bet and you'll lose time during the process.. so get paperwork ready to file the day after she hasn't left if she doesn't leave..

If this is still the case, then for a multi-plex property, all the rehab funds from the 203k must be spent on the unit you will physically occupy.  

My opinion: do the least amount of physical work possible (leave that to others with that expertise), hire good land planner/architect/civil engineer team and you do the design/land planning (find out what lot size is best from builder/brokers), get the subdivision map approved (that's the document approved by local city/municipality that approves the single lot be divided into many smaller lots), sell the land+map to builder.