I am an out of state (currently based in nyc) investor looking to create a portfolio of Buy & Hold Investment Properties in Charlotte, NC. 

ARV 120-130KI also found out home was going into auction for back taxes.I spoke to an attorney and he recommended I don't touch it because tax sale would not eliminate all liens or family claims so I gave the info to other investors who had more experience.a year later home sold for 58k taxdeed sale.How could I have create a deal here? 

I can use the equity I create to fund my next deal.

The pro to this is this is where you typically create value.

I created my own letter template and started send letters in 5x7 Manila envelopes versus the traditional white envelopes.

Because once you stabilize the property, you will have created massive equity and drastically increased the cash flow.It takes anywhere from 6 months to 24 months to stabilize a property.

If you take it subject to then you can seller finance it to him on a land contract for his existing financing.Check with a local real estate attorney to make sure all the documents are in order.If he needs to refinance to create lower payments then that would fall on you if you take it subject to.

An Agreement of Purchase and Sale is created and executed.6.

What is the best way to go about raising the rate to create more cash flow without loosing tenants?

You have to look at list price and see if they are over inflating, at market, or below market for current condition of the property being marketed for sale.Without knowing your current net worth, liquidity, annual profit income from job or business it is hard to comment further.For example if you have good cash coming in and want to create wealth you might be better off buying a new house in a new development going up phase zero (just dirt and pipes).