All other lienholders must redeem before exercising their rights.

This is the "mental exercise" I often do to determine where I should spend my time. 

Not all of them will want to deal with it, as its a major cat herding exercise,   I can say having seen it as a resident of houseshares during my college daze.Other places to consider:   Burien,   Renton,  Skyway.   

Since a Lease Option isn't a sale there is no capital gains tax until the Optionee exercises the Option and finances out of it.

I'm guessing you had a contingency clause in your offer that you are exercising.

That's like saying most people will not become fitness models, so don't bother eating healthy and exercising regularly... 

The IRS liens will sunset if not exercised but the tax liens will stay.  

It's a mental exercise.

Read DOS clause language… LIC would violate most if not all.Lease option = full control, no ownership until option is exercised… but may not violate DOS clause in the interim.Straight subject-to such as in the fact pattern = full control, full ownership, no hiding from violating DOS clause.

Some choices are much better than others.What we do then is place it out to market (not the MLS) for a Lease OptionWe are making the mortgage paymentSomeone wants to buy the property on a Lease Option so they provide the $40,000 Option fee, which we get to keep and spend, which gives them the exclusive right to exercise the Option within the agreed upon timeframeThey make payments on the lease which more than our payment on the mortgageWe get the cash flow, the $40,000 Option fee, the depreciation, principal pay down and so onThey get to paint the walls any color they want, treat it like their home, remodel take care of repairs and they have time to clean up their credit so they can later refinance and exercise the optionBut, as I mentioned, you can do a variety of things once you own the house.There are certain precautions that are wise to take, tho' I rarely see them mentioned, which is a shame.