Also property taxes were incredibly cheap at $500 / year (expected to go up in about 3 yrs). 

This would fit very well into my long term strategy of growing my LTR portfolio while still providing big tax benefits against my W2 income. 

I understand the tax foreclosure and bank foreclosure before the REO but the HOA had me confused.

If you aren't a Real Estate Professional, I am not sure adding more to your portfolio, with the main intention being tax reduction, is the best option.

I have been driving for dollars and mining the county auditor's site for homeowners who are delinquent on their taxes.

This is all before title, tax, conveyance fee's, water hold, etc.

If so, you can use the 121 exclusion and save on capital gains taxes to sell the home. 

Taxes on stocks held long enough are treated as capital gains.

Similar endeavors are underway in Rhode Island and Telluride, focusing on assisting first-time homebuyers and developing affordable rental properties.One significant strategy employed by these governments is the utilization of tax-exempt financing.

Once you have the building plans and projected budget, you can get a no-cost estimate on the tax benefits you are entitled to.