Let's assume there is no CO obtained immediately after the sale (will do later after repairs are done), and no township or local-level inspections requested.Is the township automatically notified by the county of the sale or is there some mechanism by which they would learn about the sale and update their records, other than by the buyer telling them about it, or applying for a CO? 

It can be HOA liens, tax liens, utility liens, etc.The thing that most people don't know about courthouse steps buys is that the same buyers are always there and they all know each other.

The multi-family market has remained strong, and if rates decrease I think we see more buyers in the market irregardless of property tax increases.

I found this deal while working as the escrow officer for a closing where the wholesaler was unable to find an end buyer.

I found this deal while working as the escrow officer for a closing where the wholesaler was unable to find an end buyer.

When the original wholesaler was unable to find an end buyer and the contract was canceled, I seized the opportunity to purchase the property directly.

When the original wholesaler was unable to find an end buyer and the contract was canceled, I seized the opportunity to purchase the property directly.

Rental demand is high there, but so are home buyers looking to purchase properties there which makes it a bit of a competitive market for sales.

They are FREE for you as a buyer, and the only sellers in my experience that are trying to get you to not use a realtor are either trying to rip you off or are crazy. 

At the end of the day, the sellers looking to transact in creative finance transactions are normally the owners of real estate that cannot sell easily in an arms length transaction or are gouging  the buyer on price.