We instant take action when we witness a rule a violation, like unauthorized guests.

That is how I came across BiggerPockets, I instantly was captured about the topic of renting out houses and house hacking.

I've now spoken w my Private Lender who said the same, so once I win the auction, they have my deposit already, it will take just a few more days for Title to get me a Insurance policy, which the other bank/owners of property said is fine.

ahhh yes more policy to make it tougher on landlords...who by the way delayed instant gratification to save up to invest their hard earned money into a property in order to provide a roof for someone, who in turn doesn't want to (some can't) delay instant gratification, all with the goal of earning a little return for investing.  

Considering the amounts, I'd hire real estate lawyer.I had the same tax increase this year - twice to 2017, but mine is $27K vs $10K - and I don't have a case because I actually bought it for that price.Market is pretty strong still and to get this value decreased, you'll need a professional.Don't try to do it yourself - you might lose a chance (unless you just bought it for $393K - then you win)

If you win in small claims court, you could be awarded damages as much as two times the security deposit.

If you can borrow it for 4, 5 or 6%, as long as your rate of return is greater than your interest rate... you win!

So i got the house for half that amount out of pocket.I see that as a win in my book.

So being out $10k is less than $18k and still a win in my opinion, plus you would have additional built up equity in the property. 

If they are work keeping then I might try to work with them some so that it creates a "win-win" atmosphere.