I paid $165,000 for the 1600 sq foot home and I'm assuming I will have to put at least half that much into repairs as there is severe damage to floors and walls as well as black mold.

Assuming NC requires 30 days notice for M2M leases, the tenant owes you rent until February 6th. 

@William Weston I assume you're going to stick to Indy? 

I laughed when I read that you added value through "Pain", which I assume you meant, Paint ;-)This shows that you are going to hold this investment.

Quote from @Aj Green: Quote from @Gregory Wilson: The real issue is how much of a deposit do you have to try to get back from them.Sure, your contingency might work but I assume you gave the deposit to the seller.

The other questions below are for everybody.I have assumed for several years that, if I hold a tax lien certificate on a house with equity, and the owner can easily be located, as soon as my lawyer starts a foreclosure action, if the owner didn't have the means to redeem the certificate, shrew investors would contact that homeowner, offer him some cash for his equity, then, once such an investor acquires the property, he will redeem my tax lien certificate, and all I will only get back is some of my costs plus interest.I haven't had the time to digest the implications of https://www.azleg.gov/ars/42/18204.htm yet.

This allows you to access funds while keeping your existing mortgages intact.Second Mortgage: Explore lenders who offer second-position loans on investment properties, though rates will be higher.Cash-Out HELOC : While traditional banks often restrict HELOCs on non-owner-occupied properties, some portfolio or private lenders may offer HELOCs for investors.With $15-20K in liquid funds, look for deals where you can negotiate terms:Seller Financing: Negotiate lower down payments or interest-only periods.Subject-To Financing: Assume the seller’s existing mortgage while covering the down payment.Lease-to-Own: Lock in the purchase price while using rental income to build equity.

I've also assumed VA loans where little cash was used (seller had low/no equity).

Let's assume that you do want to venture into this unchartered territory and claim the STR loophole on your CA return.

With your considerable experience and, I'm assuming, strong credit score, you would be well-positioned to receive high leverage and low rates from most private lenders.