Be blatantly clear on your prime offerings.

Estimates we are getting from the contractors to build in 2 legal units is between $110k-$150k.

Yes, a buyer at an HOA auction has title to the property, albeit subject to the existing mortgage, and can legally collect rent....until the underlying mortgagee forecloses them out along with the original borrower.  

Our grandparents bought ranches in southern Colorado & subdivided them into 35+ acre lots & then sold to buyers offering financing terms at 10% down, 10% interest for 10-yeaars..

Placed offers on a number of other SFRs in the same neighborhood.

This also why I only offer MTM leases.Good luck!

Has the potential to add a 3rd efficiency unit with a 90% finished 3rd floor.etc. etc.Here's the problem...The sellers of the property offered it to me for $200k if I could get financing.

I recently walked a distressed property being offered by a wholesaler.

They often offer free classes for landlords to make sure you know the Facts of how to manage them as you partner with the agency. 

Offer a larger deposit.