BRRRR on a property with a Tax Lien

[Jason Kaye]

I came across a property that is for sale at a very good price. It is steeply discounted because of back taxes owed on the property. I believe that there could be a BRRRR opportunity in this situation and wanted to see if my theory has any legs.

Property Details

Purchase price: 44k

Back Taxes: 58k

ARV: 120k

My general idea is to purchase the property all cash so that there is no seasoning requirement for the refinance. I will then negotiate a payment plan with the county for the back taxes. After getting on a payment plan, I would cash out refinance the property.

Assuming that the property appraised at 120k and I refi'd at 75 ltv, I could pull out 90k, recouping my initial investment plus some.

Am I missing something in my understanding that would prevent this from being a viable option?

Am I missing any underlying assumptions?