@Kyle Lamhypothetical example with simple numbers - you buy a house for 100K and fix it up for 50K.  

After 35 years I’ve developed a healthy respect for this business from the school of hard knocks.The day I’ve discovered this business is easy or simple will be a good day to retire.

My wife, on the other hand, didn’t seem to care.Today, we run a real estate agent team and manage our 26 rental units together.

It is really simple, and you are vastly overcomplicating it. 

And someone jumping into this as a complete newbie can expect that they have a decent chance of making some expensive newbie mistakes. 3) On the other hand, I feel one of the main advantages of passive investments (via syndication/crowdfunding) is that I can hire a manager who has years more experience than I can ever hope to obtain myself.

Closing off a den on the other hand could work.

I have seen loan products that will let you purchase a mixed use property to live in the residential unit, but that is a specific product and you should consult and expert to see the best option for you and your cash on hand.  

It's way easier when you have a turnover.My wife could manage this and she's hands off with the tenants. 

We’re a vertically integrated crew, so I’ve got my hands in everything from breaking ground to cashing rent checks.

You are using both tax sale and mortgage foreclosure in your posts, so I can understand why this post went unanswered for so long.If we are talking the upset tax sale, the simple answer is that the liens remain in place.If we are talking judicial tax sale, the simple answer is that the liens will be divested (at least for those where proper service of the notice of tax sale was properly delivered to the lien holders).Which leaves mortgage foreclosure.