You can give the seller 2 options: For an all cash sale: Pay Capital gains all at once and then take what is left over and invest it with higher risk or have it sitting in the bank losing money.Seller Financing Option: Take the entire amount, only pay taxes on the installments, and earn interest on what would have been the government's money... 

The Board of Directors of the Association shall have the authority to impose such other and further requirements governing the issuance of Leasing Approvals as may be reasonably necessary to effectuate the provisions of this Paragraph.

I am not certain how Indiana does it and specifically Indy but in Florida and many other states I have worked in the local county government has a property appraiser that determines taxable values and along wit that collects information such as owner owner address previous sales information and other stuff.

Is tenant finding a government "thing" or is that my job as a landlord? 

State law governs how it's handled.Debtors of this type normally has no assets to seize, such as financial assets, i.e. savings, investment portfolios.

As Etai mentions above, those loans most likely will be sold to the government and have about the same guidelines.If shopping for a rehab loan on an investment property I plan to keep, I would shop to individual local banks. 

Looking at a few properties there but would like to know about any "gotchas" -- crime, flooding, tough local government, special rules, etc.I would appreciate your insights!

The psychologists call it "becoming socialized," but for the bulk of us in America, it means you spend years in front of risk-averse, unionized government employees for the best hours of the day.

What do your governing documents and R&Rs  say? 

IMO the entire thing is a house of cards built on government lies and piss poor government intervention, without those we'd already be screwed.