From what I've read on homepath discounts it depends on the area but when they are accepting discounts it is typically 5-10 %, and in some rare circumstances up to 20%.

The property is a nice 3 family house in Providence, RI.Under other circumstances that would be great news, but I'm concerned because the building (which is the tax lien I bought) and the land have different title ( I don't have a tax lien on the land).

I have a special situation or circumstance regarding my application not addressed on the "Tenant Selection Criteria" form.

Community property states have slightly different circumstances.

I can tell from what many bloggers state that I would not consider the investment under any circumstances, even if I had no money in the project.Let me give you an example of what I feel is a good risk-workload vs. reward investment.

A bank REO guy does this every day with people who have hundreds of millions to invest in SFRs.In RE investing, you are looking for the magic triad of circumstances:1) Motivated seller - NEEDS to sell ASAP2) Distressed property - will not sell on retail market until it's repaired3) High equity - this gives them the ability to negotiate on price down to where you MUST be if this is a business and not a charity ;-)If all three of those do not exist, the deal could be elusive and you could waste a huge amount of time chasing it.Oh, and the house MUST NOT BE LISTED.

I do have good credit just bad debt to income ratio at the moment due to above circumstances.

Never buy with a quit claim deed in such circumstances.

Yes in some circumstances you can mitigate risk but you certainly can't completely eliminate it. 

Being the first isn't impossible, but more difficult.Secondly, the ability to flip by your lack of management under the circumstances means the property should be in fairly good condition, no real rehab work involved, and paint and market types.However, on that point, if you were to contract with a general contractor for the rehab work, the concern in that part of the flip is taken care of......but it needs to show the ability to profit too.