are you talking about bidding at the court house steps on a sherrif sale or post foreclsoure OREO purchases from a lender ? 

If they reimbursed rent from when you started the application that would be a huge improvement or if they could approve existing landlords that have proven themselves and catch up the paperwork and inspections after the tenant has signed the lease.I have 2 existing section 8 properties and I like the program.

What are my next steps in getting a title for the house?

What is the first step and who should I talk to?

Make sure that whatever you buy in training from whomever you buy it that you get a clear, step-by-step action plan and coaching that at the very least, will put enough money in your pocket to pay for the training you bought.  

In my experience there no reason you can't do all of these steps at the same time. 

FHA is generally a stepping stone to a conventional loan.  

The journey will take approximately 10 week; I’ll be there to document every step.

The offer was simply rejected.From this analysis, do you guys think I'm doing something wrong or missing something, or am I following the right steps and just haven't found a good deal yet?

Correct, the basis is stepped up to current value at the Time of inheritance.