The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.

(Call it 20% federal and 5% state ($15k in income tax, plus the $45k in additional taxes you created.).

I hear it all the time in consulting calls.

How does this look from a tax perspective.

Does he understand, Deeds, Due On Sale, Insurance, tax implications, servicing, contracts and so on?

So obviously being in foreclosure, absentee owner, tax lien or any of such "distress" doesn't make you motivated.So what you need to ask yourself is "how do these software determine who or what is a motivated seller right?

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

I'm wondering if some one can help with an explanation about why a Hotel has many rooms with tax lien on auction? 

I'll save you the details but...Per door cost: $63,300All in Cost: 700kTotal Revenue: 137k(ish) annuallyNOI: 65-73% (in the expenses we included: insurance, taxes, $75/month per door repair expense, management fee 8%, grass cutting, & a misc fund for random crap business license, etc.)Now...