Ideally, you get the settlement amount in writing.If you win at the auction and find liens you weren't expecting, you have to contact each one and negotiate a settlement.Each type of lien needs to be treated differently.

Plus, small multi unit properties are very hard to keep occupied in the MidWest as an added bonus...All you need to make it worse is if the tenants pay weekly with cash!

The bonus being you reinvest it and it's tax free.

Agree it does complicate the explanation and understanding but like a hedge fund, its giving the GP more incentive to hit it out of the park but by doing so, all investors win.4) Your money blueprint - the psychology of wealth.I re-read a great book last week by T Harv Eker called the Millionaire Mind and highly recommend it.

Bonus points if you finance the costs of rehab.Rehab and repair the property to force appreciate it to the market price.Rent the property to start earning an income.Refinance the current loan to the reflect the new appraised value of the property.

Start jumping into the auction when it gets closer to the amount you would be willing to pay for a property and keep in mind that once you are the winning bidder you get to collect rent, live in, evict, or whatever you want even though there is a redemption period. 

That's a win-win! 

Instead, it is much better to roll up your sleeves, and diligently hunt for the right deal, be highly selective to make sure you buy a great deal, force appreciation if at all possible, and get in such that you can stay in through thick and thin if you need or choose to ... this will open up multiple exits and tilt the odds in your favor ... heads you win big, tails you win a little, but the house always wins and you're the house ... if you are unable to stack the deck in your favor then the best thing to do is not play the game until you learn enough to from those that do ... people sometimes say that going for appreciation is speculation and if you get it it is only because you are lucky ...

So I'd defer to the lawyer.With the caveat that just because your friend would win in court, does not mean there will not be legal expenses of litigation. 

Tell her you want to help her out.3) Speak with a lawyer as well and prep for an eviction on the side just in case but hope for the best and try to see what her problems are and how you can help make it a win win.Good luck!