I guess it’s like free advertising.  

And best part, that's tax-free $, because it's not income, it's a loan.

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).

I own the property free and clear and i use the equity as part of my business line of credit.

The fact that you have a TAX-FREE income is crazy good.  

If you’d like to explore these options or have questions about financing, feel free to reach out! 

Hello @Dana Gaglion,This is not legal advice... plenty of great attorneys in NY will offer a free consultation so I'd recommend going that route.

Do you have any beginner tips for someone attending judicial tax sale which is supposed to be "free and clear" of liens?

I bought 14 houses basically for free by harvesting the equity in my houses by doing 5 cash out refis.

Again with tax auctions, some kinds of tax auctions are referred to as a "free & clear" sale.