Quote from @Jake Langley: My hoa lost a lawsuit and has a judgment to pay 5million.

When nobody redeemed, they just cut their losses and quit paying the taxes and it went through a second auction.

Even though the ARVs may be $260k, this doesn't mean a developer will pay $50k for the lot even if they totally could.

Kristina, honestly, this could be a solid first rental but only if a few things check out first.First thing — double check your numbers.It sounds like each side is paying $12,000 a year, so roughly $1,000/month.

3) How do you intend to find them if they don’t pay?

The costs are heavily run up by the borrower’s ability to take advantage of (1) judicial states foreclosure laws (2) bankruptcy laws (3) we as lenders having to pay taxes/insurance during borrower’s default (4) legal fees we pay to contest BK filings or other delay tactics (5) deterioration in property since loan origination.  

Or just pay the taxes - still 10x better than taxed on flipping.

@Perry Stanfield, I wouldn't be concerned about paying off the loan in your exchange because you will have to use all of the proceeds in your 1031 anyway to defer all of the tax.

What is everyone paying cleaners per turnover?

Willing to pay off existing and new loan for decent terms.