My initial thoughts are to spend money upgrading the kitchen and master bath; granite countertops, tile backsplash, maybe a pot filler over range, tile shower, extra windows?

There are a lot of details to all of that, but here is the handbook: https://www.hcd.ca.gov/policy-...California is relatively STR friendly, ESPECIALLY if you live in the unit as your primary residence...which sounds like a great possibility for the OP.Look around for a house that has a detached garage, basement apartment, etc. 

I have been trying to be as nice as peach pie in order to move the situation along as fast as possible. i was present when my listing broker called the manager to try and get a resolution and the manager lied twice during the conversation and contradicted himself at least twice during that conversation.

It is certainly possible to get 2nd opinions from other loan officers of course...but sometimes it just won't work. 

Basically, is it possible that all these paid off properties with not a ton of tax debt are going to be sold at these auctions?

I'm of course bias because I invest here and I'm an agent here, but there are plenty of options for great properties in the $650K range in Reno.

The possibility of a rate hike in the future was rarely discussed and often poo poo’d.

While it is possible to scale quickly, there are usually other factors that come into play.

Is it possible to buy a property from a Irrevocable/revocable trust? 

Is it possible to close and reopen a claim?