Craigslist ads (post about twice a day and reply to every for rent post in your target area), Direct mail (send letters/post cards to every foreclosure filing in your county and then follow up with them again about 3 weeks before the foreclosure sale is set to happen), Drive for Dollars (when you see a house that is in need of repair, knock on the door, ask about the owner's plans).

My recommendation is make a decision based on your target cash flow and target equity. 

It'll make paying your loan that much easier! 

I have the capital to put a 20% down payment on a nice home, but I'd rather leave as much money available as possible to see where the RE market goes and invest those dollars in other REI opportunities as I build my network and set strong, well-informed target parameters for investment properties. 

The other thing that makes me question the $650 target is you say you have 2 tenants who already balked at rent going to $600 and opted to leave instead.

It is easier to make reasoned decisions when your business is run like a business.

I am trying to figure out if I should just pay all or part of the taxes to avoid the property going to a tax lien auction and simply initiate a "regular" foreclosure on the mortgage or if it would be cheaper/easier to let it go to auction, let the purchaser notify me as I am the lien holder, then redeem the tax lien and initiate a tax lien foreclosure.

Oh I forgot to mention your parents probably could just quick claim deed you the property as well which may be easier (depending on where you live).As for sub2 deal structure it's just a purchase and sales agreement with a subject to addendum saying that the current title holders are selling you the property for exactly what they owe (i.e.

I've heard the trick with land development is getting the right Land at the right price - 10% being a good target to shoot for. 

I'm looking for suggestions about which types of tenants I might target, beyond a typical family, for this situation.