Jeff,As you already know, the current tenants have legal possession of the unit until midnight on the last day of the month.

The new owner of the property took possession with a Tax Deed and is asking 700k.

And, in most cases, even if they don't redeem, the original owner can retain possession of the property for at least a year after the tax sale until the tax deed buyer forecloses their redemption rights.  

Like they said, they cannot restrict you reasonable access during the inspection period (or you can definitely get an extension).Thoughts: less possessions and them fixing stuff is good for you.

The whole house needed to be painted, but because of the occupants we didn't know when we'd get possession.

Seller may say NO, but would accept $85,000 --- so that's good - you've reduced the price by $15,000, your trial offer was successful.The next step is Second Stage Negotiation, you've made an appointment, you got your comps, you have a fair idea of value - after inspecting the building you'll certainly find other deficiencies that you can negotiate for a lower price - at that time you make an offer that suits you.Pull out your Skinny Contract of sale and write it up - if the transaction is done right using the right clauses you should be able to control the building with right of possession and the right to market - now go find an assignee to flip your contract to.

I was told In 11 days I can file for possession of the property.

Since obviously we have to deal with the 90 day flip rule and also time is money we want possession of the property ASAP!

But like I said in my introduction, my investment strategy is based on substance, so I possess a strong belief in my investment decisions.If you do not believe in what you do then what is the point.

I got possession and started work immediately.