There is a risk that your lender will call your loans due if you transfer the property with an outstanding balance still in place.

Appreciation potential looks outstanding and I just plain old like the property (for business reasons).

Adding a sump pump or perimeter drainage to keep out standing water would also make sense.I might also not have a finished basement at all and just install a sump pump.

.- We have no outstanding mortgage debt.Recently, we discussed financing options with a banker at PNC and learned that we might qualify for a HELOC up to $480k, albeit with a relatively high minimum interest rate of 9.31%.

In most instances you need to obtain a "resale certificate" and if there is a fine outstanding you will have to pay or not get the resale certificate.  

To clarify, yes many people don't realize that you have to pay off all the other outstanding certificates in order to send the property to tax deed auction, in order to collect your principal and interest.  

After your put together a couple of deals you'll know his to document with the risk on the seller of how to profit when the liens do show up.Rick,When you say "structure your offer," do you mean to add an additional line to the contract to state that the seller is responsible for any and all outstanding liens, seconds, or taxes not previously mentioned in the initial offer? 

The interest rate this year was 11% and if the account owner doesn't pay for the following year you get the first opportunity to purchase those outstanding taxes as well (also at 11%).

@Shankar Balakrishnan In most cases, the lender will bid the amount of the outstanding mortgage debt plus interest and attorney's fees.

Loans that were 90 days or more past due climbed to 2.88 percent of outstanding balances in the second quarter, from 1.18 percent a year earlier, according to New York-based property research firm Real Estate Econometrics LLC.