I lived there 7 months while updating, then moved out so it’s now a rental What made you interested in investing in this type of deal?

Turning the studio into a functional Airbnb (if its allowed by your HOA or local government rules) or long term rental to increase your income.

Tax sales are a balancing act among (1) the need of government to collect property taxes and, if owners will not pay then, then to provide incentives for investors to purchase the tax rights and (2) investors, who need an attractive return for the risk they are taking, and (3) citizen taxpayers, who should not lose their property and all equity because of small debts and perhaps temporary or at least relatively short term financial difficulties.

Though, I've heard of other investors do deals as sub-to in this niche. 

It can save you a lot of time dealing with people that otherwise wouldn't qualify to rent your apartment.

I have lost a couple of good deals because they used the land as a construction debris dump and now the land can not be built on.

When HUD as the owner, and looks like not much equity in the deal if I'm understanding this, probably not much opportunity to get a deal below asking price? 

However, generally there is about a month or two lag with DSCR Loans between what is being quoted today and what is funding today due to deal cycle, and while there has been a ton of volatility recently, newer quoted rates are dropping and I'd expect our average to be a bit lower by the time July is through and for August - probably in the low sevens range

The seller is in a unique situation and may be willing to work a deal with me that would help me make this possible.

Hello Sir, when I get a wholesale deal that meets your budget will it be ok to contact you?