Sure, just have them sign a contractor agreement stating they have these things, insurance, etc. 

No lender will lend and no title insurer will insure a transaction in tax sale or following a tax sale unless the tax/lien is paid.IRS and state tax liens are another matter... so let us know what you've got.

The FHA loan handbook appears to be silent in the section titled “Assumptions” (pages 457-459) on whether there are restrictions on when a loan can be assumed.Aside from the FHA/HUD anti-flipping policies (which don’t limit a buyer’s ability to freely sell the property purchased with an FHA loan but rather restrict when a new FHA loan may be allowed for a recently-purchase home) it would appear that an FHA loan assumption is possible at any time, given the lender’s participation in the transaction.

As far as the tenants, do they have renters insurance?

We are currently rebuilding one property from a fire, so that kitchen is being covered by insurance, but it's been a good learning opportunity for us, and pricing on the same kitchen has ranged from $8,500 to $15,000 at a box store.We have two other properties that we are renovating and upgrading right now, both will require new kitchens and baths.

@Syed NaqviMake sure they have liability insurance and a license. 

Have you factored in holding costs (insurance, utilities, taxes) and selling costs (commission, tax/deed fees, etc)?

Here are my numbers:$62,500 mortgage $540/month for mortgage payment, taxes, and insurance ($6,480/yr)$675/rent ($7,425/yr at 90% occupancy)$80 cash flowMy overall goal is for retirement so I am happy with covering all expenses and not taking any money out for myself. 

Property 1 cash flows $230/mo or $2,760/yr. per side. if you paid it off it cash flows $450/mo per side (after taxes and insurance) or $5,400/yr.

They are taking offers contingent on viewing property...just found out they pay flood insurance on the property so not sure I want to get in to that....lots to think about!!