In efforts to get more experience with IOS, we are seeking a financial partner that potentially has experience with this asset class. 

Well, here we are again.

Quote from @Rou Odab: Some of these things would come up on a home inspection, but since we are past that I would do a couple of things.

I have proof of all of it and we are ready to act swiftly.

We are buying two houses right next to each other.

we are doing similar but hotel / extended stay valuations are almost double apartments.

You need to understand that we are only obligated to whats in contract.

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.

Limit on rentals and we are above that limit today, so no new buyers at this time can buy to rent. 

Now we are considering creating a Holding LLC that will be managed and owned by both of us.