Generally a tax sale would wipe out prior inferior liens.

Nothing here sells for less than about $2M today, and those homes are smaller with inferior lots (and outdated as well). 

IRR (without taxes) = 15.63%CAP Rate = 7.07%  (at 4-plex's MLS list price)Cash on cash = 11.80%Total ROI = 18.92%1-2% Rule = 0.92% (although this is at list price with current rent which I anticipate could be higher in the near future.After calculating the IRR, the Total ROI appears to be vastly inferior because it only factors the tax consequences of one year.  

The additional equity in a property is just purchasing an income stream somewhere around a 5% of return at present by essentially buying down debt, which is a far inferior return to other alternatives, especially more property.Some will argue that more cash in hand month after month helps with liquidity issues and therefore reduces risk, but even a conservative diversified portfolio of equities and bonds has average returns far above buying down bank debt and at the same time gives more liquidity than equity resting in properties does.I'm in the camp who agrees that parking equity in properties isn't optimal. 

While she has an interest in the property, created through the LC/CFD she is inferior to the Mortgagee.

Does it tend to increase the value of surrounding inferior properties (my potential duplex) or make those inferior properties obsolete by virtue of their inferior quality.

While as long as "nothing happens" the property owner may not notice a difference, when a non alignment of interests between the buyer and seller occurs, the buyer will be in a very inferior position.Difference #1: with conventional warranty deed and owner financed loan, lender (seller) must go through foreclosure process to gain title because of violation of trust deed or mortgage covenants.  

Target properties that need work.There's some pitfalls because you may end up buying inferior properties, just because the numbers make sense.

We cannot pay $14,400 in premiums for a inferior policy.What are other full-time investors doing for health insurance?  

They are preferred by millions of Americans to the inferior lifestyle of apartments.