In the Bigger Pockets free book, "Real Estate Rewind", as one of the 11 co-authors I wrote about one such Tax Sale purchase and made money but not enough money to warrant the risk involved.

Unless you have heavy overhead and 1000+ LOs this is the most cost effective option 5.

Best option would be to separately meter the property 2.

The spacious primary suite features a private full bath with double vanity, while the flexible layout provides options for bedrooms, an office, or hobby spaces.

If you move, renting in NYC and buying an out-of-state property could work, but make sure you have a solid plan for managing it.If you stay, buying in an affordable market and living there for a while could be a good option.

As others have suggested, you could get a conventional or FHA loan if you want lower down payment options.

But that will be your decision and at least you have options.

And while a 1031 exchange isn’t an option, some people explore alternatives like installment sales to spread out taxes or even tweaking the investment structure so your returns are treated as interest instead of equity.There are definitely some creative strategies out there. 

This is not a great return, but not terrible.As others noted, there are other risks, like having the property insured at full replacement or purchase price, or if the option is 100% seller financing with no money down or very little, versus 20% traditional down payment, this can start to move it into a better investment.

Another option is to put an electronic deadbolt on the front door with a non-locking door knob.