You are using both tax sale and mortgage foreclosure in your posts, so I can understand why this post went unanswered for so long.If we are talking the upset tax sale, the simple answer is that the liens remain in place.If we are talking judicial tax sale, the simple answer is that the liens will be divested (at least for those where proper service of the notice of tax sale was properly delivered to the lien holders).Which leaves mortgage foreclosure.

Builders can offer those crucial incentives, and the homes themselves often come with modern features and energy-efficient designs that make them even more appealing to buyers.Looking ahead, it’s clear that new-home sales will remain a bright spot in the housing market.

What are some cities that might provide cash flow, but remain affordable?

My question is: could the current tenant (age 59) remain in the property if she becomes eligible for Section 8 assistance?

Of course, that could be offset as he works to reduce inflation.

That's without figuring in tax benefits, increasing revenue per year with inflation, picking a market with more appreciation potential, making more than $1K/month profit (very doable) etc that could supercharge those numbers even more. 

The note from the first seller is only $88,600 so you have more than enough equity remaining to place it in second position which leaves $61,400 in equity on the new property or about 4%.The first seller continues to receive payments and has sufficient collateral to cover the note. 

On top of that, many policies have become more strict (especially in the last few years) with replacement cost language because replacement cost estimates did not keep up with inflation for a period of time AND/OR replacement costs on many older properties had skyrocketed so it made more sense to calculate replacement values with functionally equivalent rather than exact materials.

I highly suspect theres more inflation to come down the pipe regardless of tariffs, only time will tell.

I think 1) 10 years that includes recovery from GFC and the Covid pandemic is not a long enough duration2) I think for those 10 years, 100% is not that special3) I think many Midwest markets did not experience the appreciation you depict.There are Midwest markets that have pretty good long term appreciation but there are also many Midwest markets that have appreciation that has not historically kept up with inflation.