In general, your HELOC payment will be held against you if you need to draw on it to purchase the property.

They requested that we use their payoff statement since we held the note as trustees of our living trust.

I've held my license with HomeSmart, and they are great, just wondering if anyone would recommend a firm that's more involved in the investing world as opposed to retail. 

This is the section I have in my lease APPLIANCES INCLUDEDStove and Refrigerator, DishwasherLandlord is responsible for repairs to appliances listed above unless otherwise stated here: Dishwasher will not be repaired, If tenant would like to pay for dishwasher repairs they may, upon written permission from Landlord, all repairs or replacements will become sole property of the Landlord and will remain in the unit when Tenant vacates.Tenant will be held liable damage to any appliances beyond normal wear and tear. 

When I got there, the Sheriff's sale was held in what felt like a large closet.

This is where tenants go to file about non-working items and pay rent to an escrow held by court/the county.

@Eileen Murray - re: my explanation of why I'm losing money - the same would be true if I held the house as a rental and just took out a mortgage. 

You will get the full 12% if you hold the property for a full year otherwise you will only earn interest on the number of days you have held the tax certificate / deed.Please correct me on this if I am wrong.

I contacted a police officer I happened to know, and he came to a meeting of our Neighborhood Watch group held at my house, and consequently saw the activity for himself.

I am pretty much a newbie investor although my husband and I have held rentals in our local area in the past where we have acted a the property manager.