I don't know where to get the statistics for prices and if they are decreasing in areas or not..

The property decreased in value by half and took 10 years to come back..Can this happen again, probably.

The other homes pitched by wholesalers are priced so far above $200K (above the median homebuyer's price), meaning that you have to risk more and more of your capital by selling at an even higher price point, which likewise decreases the size of the pool of eligible, and qualified buyers.As my good friend, @Scott Wagoner, stated pretty clearly in a recent post here on BP, that the investor community is being squeezed by rising prices for wholesale property, but retail prices aren't increasing as much nor keeping pace.  

Obviously, home prices flattened or decreased during the recession.

The obvious costly decisions that a contractor might make are spending too much on materials, or making a decision in how to actually do the project that increases the labor costs or decreases the value of the rehab work that he/she is doing.

2.The 9K in judgements, I can work with the RE broker and see if the property bid can be decreased by 9K ( I think they will go for it)Property is in an awesome location in Union City.

Eventually, you will rely heavily on that local bank as you continue to grow and your traditional finance options decrease.

Property taxes are generally a function of assessed valuation not on rental income so it is understandable that some areas would not offer the value to buy and hold investors whose primary profit is from rental income not appreciation. where the 2% "rule" is achieved your tax will most likely be lower in relationship to your rent and as you rent decreases as a percentage of purchase price your tax will eat up more of your rental income.

Just another way to improve your NOI by decreasing your cost... but be ready for the upfront cost to convert it.

Yet another issue is what has section 8 set for rent for the area and have they been decreasing it lately??