The other issue you will run into is special assessments for taxes.

The banks may or may not weigh in on reserve requirements depending on their risk assessment of the loan.  

they have bailed us out on a few tough situations ans are always pretty air in their assessments in my opinion at least much more so that what i have experienced with section 8 inspectors.  

To me, such a lien would fall under Covered risk 2: Any defect in or lien or encumbrance on the Title.And the responsibility for knowing what constitutes a lien -- even if unrecorded, such as taxes and assessments, water, etc. -- falls on the title company.

The key is to evaluate the investment over some reasonable period of time to fully assess the value of the asset you are holding as opposed to alternative investments. 

For now my priority has been cleaning up the old cabin so that I can get someone qualified in there to assess the structural integrity.Would love the opportunity to share more about my situation, and to learn more from others who have been down this road before.

The homes in the subdivisions comp at around 500k.

Should I use this number as it is or is that number typically lower than the actual replacement cost like how tax assessments are typically lower?

But now it isn't just ability to pay you are trying to assess, it is willingness. 

These properties may have real estate taxes based on an assessed value that is pretty farm from market if the property has been owned by the same individual for an extended period of time.