You need to know and the auction company will be required to let the bidders know about all the liens.if you can't get that information - go find a better dealonce you find out the liens - go to them to offer an 'option to buy the lien" at a big discount - $50.00 option deposit.If you are the high bidder and the lien is still on the house - you have created a discount for yourself.If someone else buys the property - you can exercise  your option and walk with a fee of a few thousand dollars.Charles Parrish Nationwide Auctioneer and Mentor 

Here is the contract language:"It is agreed that if Owner exercises the right to cancel this agreement, then Owner shall be responsible for any and all commissions earned or unearned on any existing lease or extension thereof.  

It will not be a hands off exercise for you.

Now that my overactive mind has had a chance to relax after getting all of that ^^ out after a couple of intense days of twisting and turning ideas and insomnia, I'm realizing that while the whole TIC + 121 + 1031 exercise was helpful in that it brought us to a spot where we came up with the idea for how to take the $500k cap gains exclusion from the sale of just the upper, I see now that the whole 1031 motivation that inspired all of this thinking isn't actually necessary/beneficial.

For my money in a market like ours, the game is all about starting with a safe floor and exercising excellence in management to increase returns.  

., you are exercising independent judgment with respect to the rental and not simply ratifying decisions made by a manager, then, you may deduct up to $25,000 of real estate losses in a given tax year if your modified adjusted gross income (basically your non-real estate related income, with a few tweaks) is less than $100,000.  

You can only use the VA loan on one home at a time, so the lease option buyer will need to exercise the option & purchase before they will be able to use their VA loan again.

I know that there is a point that I need to walk away from the property, but I want to exercise my mind by trying to come up with other solutions. 

Nice post Account Closed- in my experience (nobody has exercised so far on mine) and from what I've read, the % of TBs that actually exercise and purchase LOs is really low.  

In the commercial world this exercise would have been entirely unprofitable.