I understand I may have to pay some expenses out of pocket but in few years with increase in rents, property appreciation and tax benefits can help in long term.

They could charge 4% of sales price, 8% of sales price, or a flat fee of $4000.

Not to be a jerk here, but when buying due to an HOA forced sale it seems pretty basic that one would check for other liens.  

To switch from the Electric trucks to petroleum based trucks.California will have a rude awakening when they see the electrical grid crash due to increased demand.

Are there ways to increase the income from the property?

After thinking on it a bit more, I am going to look into the feasibility of a rent by room strategy to increase the cash flow and speak with some lenders to learn more details about what I'd need to provide to be able to consider these rents in my DTI calculation when I am qualifying for the next mortgage.

To clear 1 Million on a deal you'd need to find a deal spread of 2 million because after closing fees, agent fees, and taxes you get half the spread.To find a deal with a 2 million spread it have to look something like Purchase 2 millionRehab 750kARV 4.75 MillionYou''l clear one million after closing on the sale of finished product but you'll need to be at least 1 million liquid to get the deal done.

If the foreclosure case was further out you could rent it for a little while and try to recover some money that way but not with an impending sale.  

So if you're looking to get into multifamily, I would try to identify the people in your area who owns hundreds of units and provide them value in the form of property management, joining their brokerage and bringing them commissions, walking properties for them, starting a meetup to increase their brand.

Add 20% to give you some comfortable room.Comparable Sales - What are alike homes going for?