Structuring a deal with back taxes

[Bill Tyler]

While wrapping up some business on a house in Detroit last week, I came across a SFH in a B neighborhood that interests me. It has fallen victim to a few of the typical things in the area (windows broken, damaged door, etc.) The back taxes are about $4k and are showing as delinquent but not yet subject to foreclosures. I found the owner information on Property Shark and want to see about picking it up as cheaply as possible ( hopefully just the back taxes). What would be the best way to structure the deal? The property owner is in Houston, TX and I am in Dallas/Fort Worth, TX. Would Texas law be used in the offer/contract or Michigan law? Thanks for the help! As for the numbers, the owner paid just over $12k in 2012. Rehab costs would be about $40k and ARV would $90k-$120k based on comps.

[Steve Babiak]

Originally posted by @Joshua Woolls:

Originally posted by @Bill Tyler:

Thanks Kyle. I guess I was wondering whether to try to do the deal as a "subject to" with the back taxes or if there might be a different way that BP users might recommend?

 Subject to would require a loan to be on the property. ...

 Ah, a misconception. The most common item taken "subject to" is an existing mortgage - but that is not the only thing. A deal can be subject to easements, code violations, mechanic liens plus other matters. In fact, "subject to" wording can even be found within contingencies.