But Stuart has better property taxes.

Does anyone ever buy the tax lien/deed on a property for personal use (i.e. to actually live in the house)?

The taxes will be relatively high in these areas and will affect overall cash flow.

You are not making any gain, so there is nothing to be taxed.

folks - I am unable to find profitable opportunities after factoring in all costs including property management and taxes in NJ in desirable areas.

It can be tempting to tax them for breaking the lease but I usually avoid it.  

Upon this , he said I have a place, the man had just gotten out of the hospital after 7 months and the estate was eating out of his retirement fund with taxes.

Back-taxes of ~$2650 (headed toward tax deed auction, but perhaps not for another month or so because there is no set date yet)Total Liens add up to ~$6,000, without any interest the city may have added since they have been unpaid for a few years - I'm still waiting to hear back on that, but I don't think they were interest bearing liens. 

Also, do you know what your tax basis in the property is?  

Since you won't have ≥20% equity you will still pay PMI, which you still are paying insurance and taxes even once paid off.