I'm wondering if some one can help with an explanation about why a Hotel has many rooms with tax lien on auction? 

Yes I agree you need to have a phone consultation with an Attorney.

You could look into forming a C Corp as an alternative way to own this property that could affect your tax returns differently, I am not a CPA or giving tax advise.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

Account ClosedI recommend that have a consultation with your tax accountant and/or financial advisor on ways to reduce your taxes. 

That will show what proposed tax increase you will see.

After closing, when the property taxes were due I never received any bill.

Ofcourse I am planning to consult a lawyer first. 

I recommend considering your cash flow and debt-to-income ratio before making a decision, and consulting with a financial advisor to tailor the choice to your specific needs.Good luck!

PachalAUTHOR · CONSULTANT · SPEAKER · COACH · INVESTORSubject2Institute.comGood post, very touchy situation.