What are some tax considerations or other legal issues to keep in mind as an out-of state investor investing in this market? 

This is why we buy only in the suburbs of Milwaukee, even though prices are higher, but taxes are lower and overall you have better demographic pools to rent to.

They're spending tax-payer money, so they'll cut a check without batting an eye.Document condition before and after with photos, inspect regularly, and you should be fine.

In many cases, you’ll still receive the benefits of direct ownership such as appreciation, cash flow, tax advantages, etc, however with a lot less time and headaches.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

A lot of the tax deed auction houses I see need to be demolished. 

@Dennis GallagherIt's my understanding that the "Income-Expense Ratio" primarily use operating expenses as the expense variable, which includes costs like utilities, property taxes, insurance, maintenance, repairs, property management fees, and trash removal, all of which are considered when calculating a property's operating expense ratio (OER).You calculate OER by dividing the total operating expenses by the gross operating income of a property.

Ca at tax sale. but you have to sift through 2 to 3 thousand to get those..

It is always better to start with a multi-unit 2+ so that if something goes wrong, you still have one tenant to cover necessary expenses (mort, taxes, insur, etc).Also, major renovations are not a great idea for starting out as others said, especially out of state.

Landlord shall be responsible for paying any Homeowners Association(HOA) dues and property taxes for the Property.I was wondering if I should add a additional rent clause for the sewer just so I have my base covered in case tenant try to get "smart" with the lease.I think you're fine if that's in your lease to bill them.