But if you do the right due diligence and the certificates are not redeemed then you own the property which is USUALLY worth more than the tax certificate.

State Farm or AllState can be as bad a as anything out there, so I have not seen a really good company with respect to paying out without due diligence and following the letter of the policy.

On any property you should always do your due diligence, but I find it interesting that they do not even disclose KNOWN defects.

I do not know this person and still have some due diligence to complete but everything seems above board at this point.

I'm not an attorney, but if the seller indicated that the property was not in a flood plain, I have a feeling you could argue that an adverse condition was incorrectly reported to you and you could at-least get your earnest money returned.Certainly, the mortgage broker or underwriter should have caught this during the financing contingency period, but it's also something that should be a standard part of your due diligence as well.

Include a due diligence contingency that will allow you to back out for any reason (including just not wanting the property anymore).Keep in mind that your agent may not be thrilled with you doing this, as it makes him/her look bad if you consistently back out of deals, but legally, that's how you deal with the situation.

I will be doing some due diligence of being a rehabber in this market.

Sant Sobhraj You can also just run a eviction search with a firm like Corelogic to get the eviction records of tenants when you are conducting due diligence on the asset.

He suggested If I'm going to venture into Detroit to do my due diligence properly and don't skip any research or inspections of the neighborhoods.

Also, 3.5% in taxes is higher than normal (in my experience), so factor that into your reserves and your analysis.But, given the basic information, I would definitely pursue it further by doing some due diligence and putting together a more detailed pro-forma with actual expense/cost numbers and your specific financing details.