And, once a property gets into Lis Pendens, securing title insurance is impossible since the title is "in play." 

With that much capital at hand I'd play your cards, utilize local knowledge, and find that DEAL. 

ALEX - I have been wanting to get my feet wet with a BRRRR so this might be the play. 

Giving the current uncertainty of economic situation, should I wait a few months and see what plays out?

It was a well priced asset in a good area that offered a large value add play through operational efficiencies, thus minimizing the risk that's associated with physical value adds.

Without this the rest of you liability tiers may be voided.2 - Umbrella policy - pretty much another no brainer - its cheap protection. 3 - manage debt loads - if you are comfortable keeping a higher debt limit, it is a strategy to reduce your net worth and make that target smaller. this comes into play when considering tapping equity in existing properties.these 3 should get you started. but its all up to your own risk tolerance.

I'd love to get to know other local investors who have made similar plays and get some advice on the areas I'm interested in investing in.

If that's the case the IRS lien is not extinguished by the foreclosure and therefore the 120 right of redemption does not come into play. 

I understand the intention but have seen this play out bad, many times over.  

Welcome to the BP forums and to the investment game that pays you to play!