We have already submitted our plan to the city and it is ready for approval conditional on the approval of our adjacent neighbors.

Rent them at competitive rent rates to tenants that approve auto-draft each month.

All is a case by case scenario, but I would recommend not to close until you feel entitlement are either approved or extremely close. 

Would a seller be enticed to sell to a non-cash buyer with a SLIGHTLY higher offer and pre-approval letter?

I will pre-approve to help algorithms but I will reply to their question with the answer that they obviously do not want to hear.

Well this happens to be one of the approved lenders on the HUD site, and she knew I was looking at foreclosures so I'm hoping that they are familiar with HUD.

I can get as many as I want with a simply call or email...... ( I have done 100s and 100s and 100s ) Good Luck BTW, You need to have cash ready to go, NOT HM, or a pre approval from a bank , cash in the bank and ready to close the same week or it will be very difficult to get any good deals,.  

I'd like to start contacting lenders and getting pre-approved.

Your goal right now is start with first rental with a pre-approval letter from a major lender.

@Dov SchoenbrunI’m approved at a local bank for 5% down owner occupied investment property mf.