Instead I hedge my returns by saying to them, I don't want you to have to worry about more payments right now, but I will need a better sale price in exchange.I like to do these deals in a retirement account that's tax advantaged. 

Many tax sale properties derive from estates where the heirs take no action and the property goes to tax auction.

They have shown me tax returns for the business. - I asked for 3 months' bank statements and have about 20k liquid- 16 derogatory remarks on credit report- (I feel dumb for even asking considering this)Here is the kicker:- they own a restaurant and already said "How would you feel if there were occasional workers that stayed here?"

However, on move-in day, the tenant claimed the unit wasn't clean enough and refused to move in, despite my offer to clean whatever was needed the next morning.

Looking to invest in states like Texas, Florida, Tennessee or any Landlord/Tax friendly states.Any suggestions would be very much appreciated.

@Christopher SarmientoHow was the 50k estimated tax calculated?  

Can I deduct expenses (utilities, mortgage interest, taxes, etc.) on a Schedule E for my 2023 taxes?

The life estate will spell out the obligations of the step-father (taxes, utilities, insurance, upkeep - or even a base rent that you could use to cover those costs).

What I have done in this situation is I acquired the property and then had the individual sign a long term renewable lease and the cost was $1/yr + the costs of insurance and taxes. 

Is it maybe because this income hasn't been captured in a full year's taxes yet?