Purchase price: $500 Cash invested: $1,123 Sale price: $25,500 A seller got behind on taxes for this 1.4 acre parcel in Colleton County and it was sold at auction.

I have been trying to break into the residential space on my own by driving for dollars, knocking on doors, sending letters, and cold-calling lists of vacant, pre-foreclosure, and tax-delinquent properties.

couple of questions1. are the taxes correct, will they go up after purchase/reassessment?

I smell a refi in your pipeline a year or so from now, remember this isn't a home loan, so "two years of tax returns showing a profit" is NOT a hard/fast rule at all to get the best terms.

Yes physical cash, I'm also worried about putting the money in to others bank accounts and then them getting taxed on the money because it'll look like income even if there just transferring the money to the lender.

I'm filing my taxes using TurboTax and completed form 8824 for Fed purposes.

Instead I hedge my returns by saying to them, I don't want you to have to worry about more payments right now, but I will need a better sale price in exchange.I like to do these deals in a retirement account that's tax advantaged. 

They have shown me tax returns for the business. - I asked for 3 months' bank statements and have about 20k liquid- 16 derogatory remarks on credit report- (I feel dumb for even asking considering this)Here is the kicker:- they own a restaurant and already said "How would you feel if there were occasional workers that stayed here?"

Looking to invest in states like Texas, Florida, Tennessee or any Landlord/Tax friendly states.Any suggestions would be very much appreciated.

@Christopher SarmientoHow was the 50k estimated tax calculated?