I need some advice on the following situation.I am sorry for asking such a basic question, but unfortunately, I am still new to this and never dealt with this type of scenario before.I have a single family home that is part of an HOA.My main goal is to protect the asset and avoid any potential financial loss as much as possible.The current lease agreement states that the tenants are responsible for mowing the grass.They are also responsible for paying any HOA fines, etcUnfortunately after multiple attempts to get through to them to cut the grass, the grass was never cut and the yard is getting worst and worst.They also refuse to turn on the sprinkler system which is causing the grass to slowly die.

I would take a closer look and see if, indeed, this is a big enough problem that you need to avoid it, or, is it providing you with an opportunity that others are missing.

I found a company selling small notes on raw land ($10-$50k range) that they buy out of bankruptcy/tax sales. 

You said you checked the county website for the property tax records.

I am a realtor myself so I can save on fees but my assumption is if I sell I end up somewhere with $200k that I would then need to pay capital gains taxes on. 

like what kind of surprises can we see with REO like backed taxes, association etc?

It may cost a bit but it will avoid headaches and gray areas. 

I have around $165k in savings, with an option to withdraw $16k from my 401k after taxes and fees.

On that 400, you need to pay taxes and Insurance.

Wont LLC comes with additional annual tax filling complexity ?