Or should it come to us so we have a tax record of it being inside our bank account?

If I understand it correctly, she will have to pay taxes on the selling price minus the purchase price, cost of any improvements, and 500k federal exemption.Are there any other strategies which could be employed to reduce the tax burden?

Does anyone know if there are any special tax benefits in this situation:Buy a 2/3 bedroom house and have the child live in one of the bedrooms and rent out the others. 

What is usually done on pre-foreclosure services you make a price which includes their balance owed whether it is County Property Tax, Mortgage payments, or somebody else. 

I know the different reputations but I’d like to have a mix of properties between the Centerville, Kettering(property tax hell), UD, Oxford, and Huber Heights communities.

after the win of a tax auction....is the next step to evict?....

Before you get too far, do some basic title search.....you may find a large mtg, liens, back taxes, demolition order, etc.

I have rentals in Michigan that has a state income tax. 

The August 1st property tax bill reflects the empty lot. 

I suspect that right now you want cashflow over things like appreciation and tax deductions.