In reviewing the legal docks leading up to the foreclosure, there were numerous attempts by the association attorney to contact HUD without success nor did HUD engage in legal avenues of their own.

In the lawyer's absence, her team was unable to provide a settlement/closing fee quote or the additional costs after numerous phone calls.

So, without knowing yourself how to evaluate rehab numbers, you are stuck taking a gamble of investing some capital to perform some due diligence prior to making your offer to see if this is a good fit or not.

I have found numerous other houses both for sale and recently sold in the town/immediate neighborhood that have basement bathrooms, so I'm not too concerned about being able to adhere to permit codes.

this is an age old question on BP..you have the Cash flow is the only thing crowd and appreciation is gambling .. and then you have those who invested in markets that historically appreciate who have gotten majorly rich over the last 7 to 10 years on appreciation with no cash flow to speak of.  

My first step is definitely to dive into the numerous resources here on BiggerPockets.

I've been implementing the Profit First methodology after it was recommended to me by numerous successful real estate investors and speaking directly with the author, Mike Michalowicz.

Whether you see it or not, you're in competition with numerous other units.

@Dave Foster That is such a unique way to distribute the funds from a 1031 and mitigates your risk across numerous market cycles. 

Currently a full time RVer so scoping out numerous desirable locations.