Over-budgeting is critical to ensure that renovations don’t eat into your profits.Market Fluctuations: If property values in your area do not appreciate as expected, or if you face a market downturn, the amount you can refinance for may be lower than anticipated.Financing Challenges: Securing financing for the initial purchase and rehab, as well as refinancing after the property is rehabbed, may be challenging, particularly if the property is located in an area with fluctuating values or if the rehab work doesn’t immediately improve the property’s appraised value.Tenant Risk: Rent collection and tenant management can be unpredictable.

As I understand, landlords there cannot charge application fees, security deposits and evictions are VERY challenging.Have communicated with several PMCs and investors in Ohio market and not aware of any real differences from Michigan. 

However, there are ways to leverage SBA loans so they can buy a new primary and then look at their current property as an investment property and secure a DSCR loan to redevelop and rebuild.

Quote from @Keilon Morton: I am looking to secure my first tax sale and need another investor to go in on the deal.

Texas tends to favor landlords in these cases, but follow the legal process exactly—any misstep could delay things.As for protecting against retaliation or property damage, installing security cameras (if you haven’t already) to monitor common areas might be worth it.

Sellers may struggle to mentally shift from "owner" to "tenant," which can create challenges with boundaries and property care.Security Deposit:If you’re doing a temporary leaseback, be sure to collect a substantial security deposit to cover potential damages and ensure they vacate on time.

As I’m nearing retirement, I just invested a similar amount in first trust deeds secured by real estate at 9.75%.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Since they are responsible for maintaining the relationship with you after the transaction closes, this approach adds an extra layer of confidence and security to your investment. 

We get just as frustrated because the system is a bit "broken":(I believe the team is in communication with you about your options - just be sure to also let us know your choice to secure the property to deter squatters as cost-effectively as possible.