Ultimate challenge being coming up with a large down payment.For this example, the owner owes 100k and the property is worth 425k.

Yep he lost but he is going to be a challenge.

Additionally, the validity of the tax suit (in @Gavin Snyder's case, Linebarger) can be challenged for a time frame of 2x the right of redemption. 

@Nicholas Baughman You won't know if they're squattors or owners or renters, and depending on whether they engage with you, you may not find out for a loooonngg time.I have no experience with buying occupied bldgs with non-cooperative tenants, but I know enough of the details in our area to know it's a specialty you'll need to be good at or hire someone who is. 

@Miguel Castillo Miguel going to challenge your KC food knowledge here... ask your network for the best vegan joint in town!

A fiduciary will still need to be appointed (and possibly challenged), heirs determined, and time for marshaling assets and dealing with creditor claims factored in.

An idea I had, following on Rayland's (Seattle)'s idea was to sell the project, with approved plans ready to pull for construction for maybe $50k over cost, and ask for a % at the backend, with the understanding that I would stay engaged in the entire process for learning purposes, while minimizing risk during construction phase.

What we're looking to do specifically is to find a medium-rehab home, get it for a very good price, then flip it as-is to someone else for slightly more.The challenge is that every single-family home that we've checked out only needs light rehab and aside from that, it's habitable and ready for someone to move in. 

@David Weintraub I can attest to the challenge it is finding a distressed property at a price that compares to prices back in 2014 when I bought my first distressed property.

In fact my drive and determination allowed me to list the properties for sale and make some money, as a licensed Realtor, since I've taken on new challenges to think and grow - so it worked out.Now I'm preparing to get into the next deal by building my reserves back up.Keep up the hustle Rah-sheen Blalock and good things will come your way!!!