The $1M is the remaining balance of the purchase price.

Tenants should pay  utilities - they're consuming those and landlords should 'inspect' what they expect on a quarterly basis and that includes verifying that utilities are current.  

Quote from @Chris Hertig: We recently purchased a multi-family property and have someone living illegally in an uninhabitable, detached garage. 

I have an STR in Niagara Falls and it does pretty well based on the purchase price. 

I purchased three out of state "cash flow" rentals with Evernest.

Secondarily, if I had a buyer for the land before I close, could I structure the purchase to include them without doing a wholesale deal?

He included my Last Will and Testament, Living Will, Advanced Healthcare Directive, General Durable Power of Attorney, etc.

We actually CAN'T explain what we are seeing if we are operating on the "purely rational actor" hypothesis (as you implicitly observe), we MUST include highly irrational and emotional individuals to explain what we are seeing.- Investor uncertainty.

In the Bigger Pockets free book, "Real Estate Rewind", as one of the 11 co-authors I wrote about one such Tax Sale purchase and made money but not enough money to warrant the risk involved.

The more that you talk the more potential buyers see what they are dealing with.Lori you purchased a property that was occupied.