Is the option government supplied insurance where taxes supplement the insurance?  

They can sell tax free.

I have gutted to the studs the last 5 properties I have bought from tax/foreclosure sales in this county and this one is not far from a full rehab. 

You did purchase the property in one tax year and are selling it in another tax year which satisfies one of the court rulings. 

Investors often obsess over how to defer tax obligations and ultimately make poor investments due to being hyper focused on taxes.

The key is that in order to completely defer all tax you must purchase at least as much as your net sale. 

Don’t forgot to look at all the ways properties make money: Appreciation (#1 way), equity gain through principle pay down, tax benefits, positive cash flow (never as much of a wealth-builder as appreciation is in good markets).

Be mindful of short-term capital gains tax, as profits from flips held for less than a year are taxed as ordinary income, and frequent flipping may result in self-employment taxes.While profits from flips do not qualify for 1031 exchanges (since flips are considered inventory, not investment properties), you can minimize your tax burden by deducting allowable expenses like renovation costs, loan interest, and holding expenses.If you're considering diversifying into rentals, explore opportunities to benefit from long-term tax advantages such as depreciation and lower long-term capital gains rates.

If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes.

Because of the nature of a tax lien, it would be difficult to obtain financing from a commercial lender secured by the tax lien itself.