Also, is AL the only state that allows a property to be rented out by the tax lien holder? 

A new or larger underlying loan increases the chance of being unable to fulfill this obligation.As the holder of legal title, you are theoretically able to pledge the asset to obtain financing.

: "The trustor grants to the beneficiary (me - note holder) an irrevocable option to purchase the property, including all contents except for personal property (chattel), for the sum of ONE DOLLAR ($1.00) upon being offered for sale or upon the death of trustor (borrower's/buyer's name)"2.

otherwise let me be the first to say, RUN. do not buy this. ok with that out of the way, a few things you can adjust to give you a more realistic picture in the calculator. no matter what you'll always be spending some money on repairs when you first get into a place, so off the bat i would put a grand or two for estimated repairs. i run my vacancy numbers at 8% as this is just about a month. your capex should be lower, unless this place has some really big ticket items waiting to die. same with repairs. also the insurance numbers and property tax number both seem very high, is this the real numbers or just place holders?

Added closets and hallway walls to make 4 legal bedrooms and eligible for Section 8 housing voucher holders.

most of us want to be the first and maybe even the only line holder on the property. 

And as you would expect, the banks cautioned against quit claiming the property into the LLC once refinanced under a residential mortgage because the mortgage holder could call the note due to a technical change in ownership.

Another thing he said could be done is negotiate with the lien holder to release the lien in exchange for a couple thousand dollars, being that if it goes to court they would loose any ways and get 0.

Sink/Fixtures: Clean sink, drains, faucets, towel racks and toilet paper holder.

Particularly IRA holders with smaller balances who are getting poor returns.