If my little money pit goes to $650,000, I don't care we will sell in two years, before this entire thing implodes.$300,000 tax free would be way too good to resist then.  

You have to be careful because most of the time the deposit will not be refundable and most if not all of the properties you have to bid on site unseen.

You may want to be careful if that doesn't settle down in terms of the volcanic activity.

Owner pays for water and sewer, plus lawn/snow care. 

But if I was a new investor, I would be very careful, do you own numbers, and honestly, I would stick with my own financing and contractors.

I would also have the tenant take care of all of the maintenance for the property during that time.

More units means more potential for cashflow...Just be careful on taxes - quite a few cities in Bergen and Hudson counties are reassessing taxes soon (generally this would mean they are raising taxes). 

The other thing I would add to my earlier comment, if the tenant does move out, or if he doesn't seem great now and you want him to move out, make sure you screen very carefully for tenants.

@Sean PourYou are very sweet for caring about how people live their life.

Even if you did get it, you want to be very careful as long as the bankruptcy case is proceeding.