With 7 or 8 years to retirement my wife & I definitely looking to up our "game" in terms of passive income!

I know exactly what streets I would and wouldn't buy on in my city, almost completely... so yes- I know what you mean... getting down to the zip codes is a game changer. 

H.U.D homes that are open to investors means that no person wanted to buy it to live in .So after 30 days give or take the investor can buy it .So the house will need work the main issue for me is location , foundation then ,sewer,after that all other issue I will take on it is just a numbers game .

Beware of additional fees for sending you accounting every month, etc Someone who does master leasing does not play those games.  

The question is if this property you are considering slashing your overhead on is one your keeping for the long game.  

It's just part of the game.

Second, you would effectively have no skin in the game.

While I am a skilled carpenter/contractor, I have yet to step into the real estate investment game.

I bought my first property (4-plex) 3 years ago in California and my plan has been to play the long game and try to cash-out refinance every 2 or so years to put towards another like property.

Any specific banks or agents you'd recommend I engage a dialog with?