Losing a house to unpaid taxes can be devastating, but there might still be options. 

@Jonathan Baptiste Have been house hacking before it was a thing, 29 years to be exact.

To fund your next deal, explore conventional loans (15-25% down), FHA loans (3.5% down for house hacking), DSCR loans (based on rental income), or HELOC/cash-out refinance if you have equity.

Destin is a great spot for house hacking—tourism is strong, so renting out part of your property could help with the mortgage.

You have to include the cost of your time and the work, especially on a "scary house" is daunting indeed. 

Quote from @Victor Yang: If I gift a house, what amount will go towards the lifetime gift limit, the amount i purchased the house for, or the current FMV?

After 20 years as an investor, broker, and lender, I can tell you that house hacking is one of the smartest ways to start.

The good news is you don't need a specialty loan for a house hack, just a traditional primary home loan.

I was in a similar situation for my second house hack.

My DP was around $20k and when I sold it I cleared over $200k.Good luck to you and let me know if there's ever anything else you'd like to know about house hacking.