Read books, seek mentorship, and understand costs.

Are they going to just place a lien on the lot and bill me for the demolition cost or should they bill the owner for the cost as I don't own it and only have the tax lien? 

To start, I'm only considering making offers on properties where the seller owns it free and clear.What is your step-by-step process?

If I sell, I pay off the debt, lose the asset, and have no more monthly income from the property but I would be DEBT FREE, which is very enticing.

Imagine how much better it would be to put $5K every month in your pocket (tax free) instead of $300.

. - Costs and Returns : In overly general terms the cost of doing business in Oregon, (especially on complex property types) is more manageable in Oregon in comparison to let's say...California?

It is only fair that you pay them something in a situation like this and you need to consider what this is costing them not only in hard costs but in the inconvenience and lost opportunity.

Example:House rents for $1,500 a month and utilities cost $150 a month.

You need to factor the cost of refinance (average $7K which may change depending upon the price of your home)

They also mentioned their would by extra cost on their power bill “which they are responsible for” from having to run the well pump for an hour or 2 to shock and flush the system!