I believe in general, liens which are subordinate to real property taxes, which includes mortgages, are extinguished by a tax deed sale as long as they were provided proper notice of the sale. 

If this seller just renovated, hasn't owned it long and has a mortgage, your chances of obtaining favorable to you proper SF are low anyway.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

happy house hunting.  

I suspect you will need to raise a little over $2M from investors to properly execute this deal.As a side note, 12 months is never going to be realistic on a full turnaround.  

With an attorney handling the eviction, you can not only ensure proper handling but also take advantage settlement agreements to prevent having to restart the process if the tenant were to default again and get automatic final judgment when the tenant defaults on the settlement agreement. 

here are my stats on 6 months being with them (not by choice but they acquired the property manager I had in chicago) I have 22 units in 4 buildings    Rent 22.5% lower rent      Expense 34% increase in expenses Also all expenses are way above market rate with minimum oversight for vendors overcharging or proper negotiation for volume work.

- Properly document your rental income on a schedule E and report it to the IRS.Connect with an Investment Friendly Lender- Not all lenders are equal.

Whatver you decide, you'll want to ensure the proper addendum is attached to the lease to specifically outline how utilities are handled and charged if charging tenants. 

All of this works because proper due diligence was spent in the beginning to more fully be aware of what one is dealing with.