Initially, I told him that I may have to wait to pay him $15000 for work done until the house sells.

Does anyone look at how long it takes to make your money back on your initial investment (down payment)?  

A step closer to passive management.

With the central CA trade, sure you're bound to get more initial cash flow.

You can follow the same steps that appraisers use, by researching what similar homes are selling for in the neighborhood, which will give you a good idea.My valuation of a property is purely based on the income it can/will generate.

I need to consult with one for next steps after purchasing from the tax sale.Thanks!

You just took one of the most difficult steps in real estate investment; the first step.

Step 1 of course, find new insurance.No, the bank won't call your loan, But they will secure Force Placed insurance, which they have a right to do, and it will costs 2-4 times what you'll pay for your own policy, and will have worse coverage, and you will of course have to pay for it, or be foreclosed on.

I'd say your first focus, as should be everyone's when they are starting, is investing your initial capital into education.

Congrats on taking the step!