This is crazy that they even have the balls to charge that much.

Even then, prospects were low-balling me.

I’m an auctioneer now and I feel this would really be a great business to go alongside that, but I’m struggling to get the ball rolling.

They worked hard to build equity and certainly don't want to be low-balled out of it if they are not in a crisis situation. 

Our plan is to house hack with a single family home and casita using airbnb, which will then free up cash to purchase a small multi-family and start the ball rolling using the BRRR method. 

Then if they don't play ball, follow through and file the complaint.

I just need to get the ball rolling..

Ideally I'd want to buy relatively close to downtown, since I currently work full-time at an investment company down there, and I really like the John Ball/Swan, Belknap, Creston Heights, Fulton Heights, and Eastown neighborhoods. 

For my area its is higher then normal market rent will the gov pay the fair market rent or try to low ball the price depending on the property?

Congrats on getting the ball rolling and I hope you can keep up the momentum.