the big issues there........ the government is corrupt as hell. especially in the muskegon heights area. my brother has had no end of trouble with these people. also, other areas of muskegon, such as the city, they hire out their inspections process to a place called safebuilt. these people are worse than the government over there. my brother sells a lot of his houses on land contract. these people simply refuse to accept this as a sale and call his houses rentals. they claim this gives them the right to issue him tickets for repairs needed because he is the " current owner of record". they use a portion of the government system that is outdated and has inaccurate records to claim he is the owner. consequently, he winds up in court all the time with new " violations" on these " rental houses" that he has full proof that he sold years ago. as of yet, he has be able to beat them in court just by proving that he no longer owns them, but he is going to court almost every week with them. i believe they hope he will just give up and pay the fines. that is not gonna happen with him......lol. but, just so you are informed, muskegon may appear to be a good place to invest, but you will have serious hurdles to jump over on a regular basis. 

Either another person comes in and pays the back taxes (lien) and the proceeds are turned over to you in the form of a return of your money plus interest, or the property goes to auction and you will outright be given the property if no one wishes to purchase it. 

I would recommend proceeding with a turnkey rental out of state as long as you have properly vetted the turnkey seller and the numbers on the house are good.  

Use all net proceeds from sale into another investment property2.

These replacement properties would go in the required EAT.2) Name our CA triplex as our relinquished property, list it, and sell it within the required time frame.3) Use the proceeds from the triplex to finish off the reverse 1031, and I guess that will reimburse us for the cash we used up front to buy the replacement properties.4) After a couple years, we'd sell our current home in CA and avoid capital gains tax on that profit, then quit using the house we bought in CO as a rental and move into it.So, my questions:A) Does that all sound feasible? 

Costs of defending title can exceed the value of the property, paying off any mortgage, indemnification of equity, attorney fees and court costs and perhaps other liens or costs of claims. 

hi deurward. thats a tricky issue there. the kids of the brother would actually be the owners now because of inheritance rights. that is, if the mother actually deeded the house over to the son before she died. if she did so, then of course his heirs would have legal right to the house. case closed. however, if the son did not have a will at the time of his death, then the house and his assets would have to go thru probate as he has more than one heir. if i were the sister, especially after 5 years, i would push for the probate. its gonna cost her, but she has a good case simply because the kids have made no effort to aqquire the house house themselves and made no effort to pay the taxes or upkeep on the place. hence, they have proven to have no intrest. i would push the issue in court and see who stands up to claim their inheritance. if any of those kids stands up and says " its mine", then at least she can hit them with a bill for the taxes she has paid and any upkeep. 

Then if something should come along that company will pay your legal fees and if a court rules against you the title insurance company pays you.  

Not quite sure how to proceed.

Additionally, depending on where the property is, you may have to go through dewinterizing it, so keep that in mind as well.Once the property is up and running again, you can basically implement your rehab plan and proceed accordingly assuming you've taken care of any issues that might obstruct you being able to start working (i.e. getting certain permits, if needed) As a sidebar, remember to plan on making sure everything will be up to codes upon the completion of the project.