Great deal on surface, but many questions

Hi everyone,

I've been listening to the BP podcasts for a month now, watching videos, and reading forums. Love the content! First time posting.

I've made a good connection with a lender who sent me a lead on a multi family property in the midwest, over 17 units. According to the lender, the seller is looking to liquidate for a bigger purchase. He is selling the property far below market, and I asked the lender why. He stated that the seller hasn't filed any schedule e's, and I noticed that the seller hasn't paid property taxes in the past 2 years. He stated that this is a marketing strategy that the seller uses "note buying" / "tax sales." The property generates about $126k annually at the moment, and is expensing at about 53%, but I projected 60% to be safe. It has an 8% cap rate.

Has anyone come across a deal like this where the seller doesn't have schedule e's and hasn't paid property taxes recently? Is this a legit deal? I plan to do extreme diligence if we do open contract. Any insight on experience with something like this would be much appreciated!