I have read that if a parents gifts it, then it can be transferred tax free.

Checking: collect all income here, then use it to pay bills.

Don't be suckered into buying cheap properties - unelss you know exactly what you are getting into.Here's some copy & paste advice that applies to just about any Midwest rental market:--------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Lexi Blocksom suggest you discuss in detail with @Russell BrazilYou've made a mistake thousands of naive investors have made - expecting Class A results from Class C & D properties:( In general, you'd want to compare what you can sell the property for now versus what it would cost to update it and what you could then sell it for.

Police had left by then so not a great experience to say the least.

They'll start at minimum and then if no one bids, start lowering the price until someone does get the bidding started. 

The word arbitrage was not even being used then to my knowledge. 

Hey @Brett Baker, generally, any place with a great water view or directly on the water will bring more revenue.Of course profitability will all be based on purchase price and prevailing nightly rates in the area.If you find a cool 2/2 or 3/2 right on the water with a great view for 1.5m or a 2/2 or 3/2 house a block away for 600k, then I would look at the house over the condo.

Only difference is the $10K is in your bank and the interest starts so you are paying on the full $10K over how ever many years they offer.Lastly, depending on your first mortgage rate it may be best to just do a "Cash out refinance" becuase its over a 30 year mortgage and the rates are lower then both Heloc or Heloans. 

If the OP doesn't pay the taxes then the property will go to tax sale again and he will be wiped out.