We actually beat a higher priced offer due to our clean bid through the MLS.  

Unfortunately, I am usually doing the grunt work, running for materials, cleaning up garbage, and generally just keeping workers company (supervision).

It took us several days to get it cleaned up, which seemed reasonable, but we caught flak from the city.  

My line of thinking is that hardwood floors may be cheaper over the long run since it's easier to clean.

Long term capital gains federal and regular income state.As my grandfather said, it is hard to loose money paying taxes.They are not fun though

Such are not marketable.Contaminated properties are high on the list to stay away from, environmental issues can be very expensive to clean up. 

A few anonymous phone calls could get the yards cleaned up or the occupants cited to court. 

Why aren't you just getting a regular mortgage on the property?

YA just remember it would not be smart to do anything with the property until the IRS lien period has expired.For example if you do a clean out and put thousands to tens of thousands in repairs and the IRS decides to redeem you will not be compensated for any of that.

The rest of the work, restoring the property to livable condition you can have a regular contractor do at regular rates.