(*I'd also caution that sometimes those low-priced deed transfers you see in public records are actually things like transfers between family members, so they are not "arms length" transactions that have any impact on or correlation to actual market value). 

So net saving will be $358 - 220 = $138/monthOne impact I think of is the tax return of that property in that state.

Are we entering a time of uncertainty that’s worse than what it was in March and what impact will this have on prices, rehab resales, wholesale deals, rent, etc...?

That along with the uncertainty in the economy right now, I would imagine it would have some impact on the RE world in the near future but only time will tell.

I would not make repairs if HUD has already inspected the unit; I would however, try to call the case worker and talk to them about planned repairs and if that would impact the rent you would get from the program. 

Be sure to consult with your CPA so you understand what the tax impact is going to be and it this would be worth it. 

The cost of the house he tries to buy will impact the answer.

I began out of state investing in Rochester NY in 2004 and soon discovered that even carefully crafted cash flow projections seldom capture the full impact of the repairs/maintenance you will incur, especially in the upper Midwest (Toledo, Cleveland, Buffalo, Rochester, Erie) where the winters can be absolutely brutal. 

But these things do not directly impact housing prices. 

If I depreciate property value on my tax return to deduct my net income, will that impact my mortgage borrowing power?