Then it may need to be handled with certain procedures.

International taxation is very complex and you should not handle it on your own.

I realize taxes are paid yearly, and any other costs on the property (repairs, improvements, property manager, travel costs, etc.) will reduce the income I am paying taxes on, but for now I am just trying to get a general estimate of the monthly breakdown.Please point me to some resources that can help me understand how to best understand and handle taxes! 

You may get stuck with a property to can't afford to fix up or handle any adverse situations that arise.

I'd certainly run whatever I was planning on doing by my loan officer before I did it, just looking for how folks generally handle this. 

I've never gone through the process of having a tax sale annulled especially after improvements have been made to the land and the exact way it is handled will varies from state to state so your attorney can find out for sure how this impacts you if you were to go that right but it could be messy. 

Hi Prashanth, I agree with Lake's answer but wanted to contribute some about STR's - my answer deals mainly with Oahu as each county in Hawaii differs somewhat on how they handle STR's.  

Like Patti said, you get what you get....I just recently went through this process and had to contest the appraisal, which the lender also handles. 

Do you have any idea how to handle that?

I am not sure how Alabama handles this but I would contact the state Real Estate Commission there.