As someone else already mentioned, you cannot use gift funds for the down payment on a conventional investment property purchase.

Personally I'd think more about quality of life you are looking for and if that market fits into your overall investing goals.

They owe back taxes(3500) and I'm sure they do not have the funds to make repairs.

Maximum 10 total properties (not 10 financed properties like fannie/freddie 1-4 unit properties, so even if the properties are free and clear it counts against this 10 "properties," whether there is debt/liens against them or not)You can use 1 year tax returns for self employment and 1 year tax returns for rental property income calculations as well which is huge for BP folks since most of us are rental property investors and self employed/S-corp/schedule C personal tax returns@Matthew Kwan @Carlos Valencia @Joe Homs

If a person cannot afford to make their taxes and insurance payments on a monthly schedule, how would they have the personal discipline to set it aside for yearly lump payments? 

I answered and the person told me they work for private investors.

The property is in pinellas county (clearwater)   The folks above are correct that you can check out the county recorder's office / public records, which may entail having to go down there in person during gov't work hours.You can also ask your realtor or loan officer, who may be more available, and can send it to you via email. 

But seeing that yearly income, I really dont think I would need to. its kind of mind numbing to imagine those kinds of funds coming from working for $19.50 an  hour....

How does anyone lock up a property without a proof of funds or verified funding?

If I secure FHA funding, I would live in the house for the required time, then rent it out.