We know there is no "cut and dry" answer but are looking for input to help us make the best decision.

Because they didn't have a predictable business with consistent lead flow (No lead flow = No Closings) For now keep your overhead low - keep doing what your doing and study your KPIs, keep track of what marketing works and what doesn't, gradually invest a bit more into your marketing channels and have reserves for yourself (expect dry weeks/months with no closings).

also the first mortgage is being extinguished through the excess proceeds of the sale so this note will be in first position.. @ Will, makes sense, thank you! 

-------------------------Tl;dr I think I found a really good starter portfolio deal, but I'm not sure about how to "creatively finance" it or how to make it happen.

@Daniel Chappell why not buy a rental and then use the excess cash to also househack?

Paul Samuelson, Nobel Prize Winner in Economics, said, "Investing should be like watching paint dry or watching grass grow. 

Then, any excess cash, you save and start building your alternative bucket of portfolio like rental properties.

Some of the ones that were not redeemed were like a former dry cleaners shop that had a caved in roof and lots of mold. 

They can, however, tax the buyer at X, Y, or Z rate and this is likely what you are thinking of.As to how this YouTuber can do this . . . it's pretty cut and dry  In this video there's something like $300,000-$500,0000 "given away", sold, or donated. 

Catastrophe to me is money dries up and values drop like a rock.