Not sure if it'd be of interest to you, but a buddy and I built software that helps RE pros find and close more off-market properties through real-time, custom intent signals like probates, pre-foreclosures, code violations, and eviction notices.

What I think I understand now is that, for instance,, if the taxes due for the bid year are $500 and you win at $5000,  the extra $4500 is essentially pre-paid 2009-2013 taxes for when you get the deed. 

In the income example maybe there is a way to look at it pre-tax on gross income for what we declare to a lender etc as our actual earned overall income; and maybe some prefer to look at net income after taxes.  

Presumably the tenants payments would allow you to save a chunk towards the second tranche, if you will and you have that time to earn, borrow, etc. more cash separately. 6% is a very good rate right now so I’d sweeten the deal with a pre-payment penalty, say 3 years?

Those of you that are reading this that never post, the point being made is “know the laws of the jurisdiction you want to chase pre-foreclosures in”.

Just keep in mind that DSCR loans have a Pre Payment Penalty (PPP).

The point I’m making, and highlighting is if the seller is not offering buyer broker commissions (like pre-settlement) your carefully crafted “seller gets more” won’t mean anything.

Also - get a free  full loan pre approval in place for whatever  hypotehtical scenario you are considering  to make sure you have  finnacing lined up 

:) Assuming you are asking about a DSCR loan with that low loan to value you should be in the low 7's without significant buy down with NO pre-payment penalty. 

Every lenders rate stack is different, so unfortunately only your lender can tell you how many points it'll take to buy down the rate.Break even point = (difference in cost) / (difference in payment)If you think you'll refinance or sell the property before the break even point, financially it typically doesn't make sense to buy down in points (however, consider tax benefits if it's your primary as you may be able to write off the up front points -- which is considered pre paid interest).In you scenario (assuming a 30 year loan), the difference in cost is $3150 and the difference in payment is $52.