The notice of a tax sale may not get to the right person to pay it off. 

Build a home and then purchase that product with a personal conventional or FHA loan? 

This is an extremely important point, because if there is no clear rules defined by each person, then it can be confusing and lead to anger or resentment between partners.

They just take a personal financial statement.

o Commercial loan, sort of - they are 30-year fixed DSCR loans with private national lenders.o We close in an entity/LLC 99% of the time - very rarely do we receive a request to close in someone's personal name.

Option 1 allows you to spread your investment across three properties, considerably increasing your rental revenue and accelerating portfolio growth; however, maintaining several mortgages can be difficult, potentially limiting your cash flow, especially if one property is vacant.

I guess as long as population growth keeps ahead of it, you are fine.

And the bank will need a contact person for security reasons.  

There's a lot going on and we're very excited to invest in a city we care about and with so much growth. 

If  your rule is not to rent to anyone with a prior eviction, this person would fall under that rule.