You are correct in waiting until the bank gives the go ahead.

If the IRS lien is old then you could buy house for a few hundred or as little as possible with a Quit Claim Deed then wait out the IRS lien to expire after 10 years.

I'd like to start investing, but I don't want to play the market timing game and potentially wait years until we see a dip in prices locally.I have considered Fresno, Sacramento, and Phoenix because I am familiar with all of those areas.

Here is something a guy named @Andrew Postell put together and I say is well put together:If you buy a property with cash (or with a HELOC) you can receive a cash out loan on Day 1.There is not a 6 month waiting period with receiving a cash out loan if you purchased a home with cash or with a HELOCBUT you will be limited to the amount of….Your purchase price + closing costs (costs when you purchased the home)OR75% of the “After Repair Value”…WHICHEVER IS THE LOWER AMOUNT (super important)These rules are important to understand so here are two examples:Example 1: If you purchased a home with $50k of cash, and put $30k of renovations into the loan, and the home was worth $100k. 75% is $75k and $50k is your purchase price.

They will need to see the last few years tax returns, bank statements for the last 6-12 months, pay statement, and probably have you fill out a personal financial statement showing assets and liabilities.You don't want to wait until you have something under contract to do this.

If we waited until the end of tenancy the security deposit would rarely be enough.

Do we have to wait out the redemption period no matter what?

I am waiting for the County Treasurer to issue the deeds in my name...it's been a slow process (I started the process last January) but that's where my efforts are currently focused.

When its time for the very big pay day down the road, you'll be glad that you waited to pull the trigger. 

My thinking is a thousand for roof patch is pretty steep.