It's paying its own mortgage so its accruing value, plus appreciation (Probably.

to answer your questions 1. it's on Oahu, 2. amount owed, with accrued interest and penalties is around $960k, 3.

So if they want to give you a full payoff (remaining balance + accrued interest + legal fees to date), you assign the DOT to them, they become the new 1st lien holder, and you walk away. 

If your check is dishonored by your bank, you must pay us a service charge of $50.00 plus any other charges provided by law and plus any accrued late charge(s).

You are cash flow negative for the first 1-3 years yet accruing preferred returns.

Each day you don’t repay that loan, you are accruing interest.

Once you've acquired property there's usually a period (2 yrs i believe in Illinois, not sure about Texas) where the original owner is allowed to pay off the taxes as well as the interest you will have accrued and reclaim the property before is actually relinquished to you.

The property taxes will accrue 18% interest plus fees, and of course if you don’t pay them off within 2 years, the property can go to a tax deed auction.

For total ROI, I assuming that would include equity accrued (i.e., principal paydown), as well as projected appreciation at time of sale? 

If the investor files an ejectment lawsuit and the taxpayer counterclaims for redemption, then the legal fees of the ejectment lawsuit must also be paid upon redemption.If you buy from the state, it is not 12% interest on your purchase price, but each year's taxes continue to accrue interest at 12%.