The Federal Government Lenders eventually started the HomeSteps First Look program for the foreclosed inventory they needed to sell.

If the goal here is to build wealth and put FOMO to rest then you shouldn't limit yourself to a single zip code especially given your other constraints (purchase price cap, appraisal, low inventory, high competition).

Me and my mother were looking for a duplex to house hack, we got approved for up to 500k but my question is I know with slim inventory and more of a selection on Single family homes I wanted to know if we are able to purchase with a standard FHA loan on a Single Family with a good size lot and and say couple months down the road turn around get a Renovation loan on the ARV with an ADU on the property to rent out due to the New laws for ADU have taken place I figured this will be another avenue to explore than just a duplex to house hack?

These deals are attractive to investors for the following reasons :Contracts to build 3-4 bedrooms are available under $300kRental Comps from $1600-$2200 / monthWarranties:10 Year structural 2 years electrical, plumbing and HVAC5 year warranty on the hot water heaterTight market with low inventory.

If you did physical work to create the lots (ingress, utilities roads etc) then you will want to consider with your accountant whether you have created "inventory" or not. 

I wonder if you find a facebook group for homestagers and see if they decent inventory to sell.

When supply couldn’t meet the increased demand, prices surged and the inventory of homes available for sale plunged.

From what I see, very low inventory and low interest are inflating prices, but it all may be related.

The inventory of the market I am looking to invest in is pretty low.

Whether the inventory crunch and subsequent frenzy to overpay for a property will ease as we enter spring/post-covid...remains to be seen.