Failure to notify, and/or improper notice, are reasons that a property tax foreclosure sale can be overturned after the fact. 

@Dionysius Feaster You have stumbled upon a strategy that we have come to know as Return on Equity or (ROE)!

What is the ROE?

So, adjusted for the clientele as in, the target renter, make sure the following metrics are in-line and you should be fine long-term: Debt-service coverage ratio (DSCR) > 1.25, Return on Equity (ROE) > 7%, Internal Rate of Return (IRR) > 7% levered, > 6% unlevered, and your Operating Expense < 30%. 

Having said that the ROE is pretty low (you have $200k+ of equity tied up with very little cashflow) but nothing wrong with holding an asset that has a high likelihood of future appreciation.

Definitely tough to cashflow at current rates but I’ve found that what is working in this market is taking a longer term BRRRR view ie add value, increase rents, build equity and hold on for 1-2 years to refi when rates are in your favour then you should find yourself in a good spot from an ROI and ROE perspective.

ROE = Cash Flow/Equity = $84k/$1.35M = 6.22%It really just depends on your goals.

With any investment, measure the ROI/ROE and CBA (Cost Benefit Analysis) to see if it makes sense.

@Samuel Chua I think it would be easier to understand why your return on equity (ROE) would be decreasing.

Other than the obvious, “find a good cash flowing deal with high ROE”, here are a few things that have helped me...First, assuming you have your properties under an LLC, you should talk to your CPA about “material participation”.