Are there rules of thumbs governing this decision?

Have you considered that the Fed's printing money like water to buy our Federal Debt is really just a hidden tax on all citizens who try to save Dollars or expect the real value of their rentals to appreciate?

They're probably not reporting your money to the government, which could create tax problems for you down the line, and by not having a contract they are less bound to the job and more free to walk off when they want.

You are putting a deposit down for the appropriate governing body to foreclose on the property for delinquent property taxes.

@Joshua PavaoIs that a Federal Pacific "stab-lok" breaker by chance? 

@Lelith WalkerYour governing documents should outline the procedures (judicial foreclosure, non-judicial foreclosure, etc.) the state of New York may also have provisions in their condominium law that governs how you can collect.

I'm planning on bidding on my first property at auction soon and started doing a recorders office search on the title.It looks like there are some hefty Federal tax liens that were filed on the same day about a year ago.

I suggest these area because of the tenants usually be great quality, section 8 (government housing authority) qualifications are easy to clear.

These individuals are held to a higher standard, and also have direct deposit available through the government.

Our agent was able to hook us up with a FHA Grant loan broker, in which the government just flat out gives you the 3.5% down payment.