The plan is to use the proceeds from this rental to buy another rental property for about $650-700K, plus to pay off the home that they live in now ($260K owed).

And don’t underestimate the power of direct outreach; some sellers may be more flexible if you present a clear, structured plan for partnership or financing.

Vetting tenants on my own to avoid paying broker fees is the way to go

If they fail to pay the taxes, plus fees and interest, within that time, then the property legally becomes yours.

If you're planning on investing out of your area and will not be managing the property, why don't you look at better markets.  

Now, you need to figure out how to find deals and pay for them.

. Haul away any demo/trash – Owner pays for cost of trash – contractor to provide all the receipts Pick up any/all materials for project and deliver to jobsiteKitchen Install new cabinets. Remove soffit and half wall, reposition outlets and switches. Extend half wall to match hall. Install bar island (12 inches) on half wall. Install two pendant lights above the half wall. Install new tile on kitchen floor, including floor cement board and tile. Install new appliances (refrigerator, range, microwave, dishwasher, and garbagedisposal). Run dedicated electrical lines to the refrigerator, range, microwave, dishwasher, and garbage disposal. Install faucet and cabinet hardware. Install all necessary plumbing Install backsplash. Move outlet from behind range to more optimal location Install GFCI outlets within 4 feet of each other along counter space.o At Least two dedicated lines – all on GFCI breakers and at least one GFCI outletper circuit Install dedicated electrical circuits as follows:o Microwave: Dedicated 20-amp circuit (12/2 NM wire with a ground).o Garbage disposal: Dedicated 15-amp circuit (14/2 NM cable with a ground).o Refrigerator: Dedicated 20-amp circuit (12/2 NM wire).o Gas range: Dedicated 120-volt, 20-amp circuit (12/2 NM cable).o Dishwasher: Dedicated 15-amp circuit (14/2 NM cable with a ground).Bathroom Demolish existing bathroom elements. Install new cement board on floor and tub surround.o Seal with cement tape and red guard Install new fan, light, mirror, vanity, and replace toilet lid. Remove old tile and install new tile. Install new hardware and replace any old drain and supply lines. Install niche and tile from bathtub to ceiling. Install new bathtub and GFCI outlet. Light and fan on same switch Install all necessary plumbingLiving Room Install sliding door board trim. Install spot lights. Install 3-way switches in the hallway, living area and staircase (where marked). Install new air vent covers.Hallway/Staircase Install 10-inch LED light. 3-way switch (one near kitchen other near bedroom) Place laminate with Metal bullnose Install spotlights over staircase and one at landing at the bottomo lights on 3 way switchesBalcony Paint railing. Replace lightBedrooms Install spotlights in bedroom (up to four per bedroom). Install new fan. Spackle, sand, and paint. Paint closets and shelving, ensuring proper installation of shelves. Install spotlight in walk-in closet.Outside Paint stair railing. Install or repair 2 doorbells. Install or repair 2 exterior lights.Materials Included Cement/hardy board, drywall material. Granite slab for countertop and bar. Kitchen sink (D shape). Setting materials (thinset, grout, drywall tape, red guard, etc.). Baseboards, door, and balcony trim. Plumbing materials (excluding fixtures). Fastener screws.Total labor cost: $13,000

Even if you pay 10% in interest.

Do you plan to scale this year and if so what type of properties will you be targeting?

@Ellis Moyewe really don't know a lot about this situation since there aren't many details in your post... but i don't think this makes any sense for anyone involved here...if it's a flip that's not selling, refinancing may not solve your problem and allow you to pay back the HML in fulland typically a sub to buyer wants a low interest rate... and if you refinance now you won't be getting a low interest rate, you'll just be getting whatever the market offers.and finally.... the vast majority of loans are NOT assumable.