If it was legally yes you are obligated and they may do a due on sale on you and make you pay it off. 

Of course, I would want a title search on the property to make sure their are no other liens that could affect the sale, but can you tell me if you have any experience executing this kind of sale?"

Keep it as it is for cash flow, until you are ready sale, then convert it back to SFH for higher price?

Here's a summary of the economics.They purchased the property for $280,000 in 2004.The loan balance is about $178k.Monthly principal and interest payment is about $1,265 with $709 currently going to interestProperty taxes are $4,116 annually and insurance is $1,000.Currently the house is vacant for the sale so there's no rental income.Therefore, the monthly burn is -$1,135 (ouch).For the sale:Property was originally listed at $335k and they received 0 offers at that price. 

Let's assuming that after backing out commissions from a sale at $520k, I use that since price since that would make it a 6.4% cap, then I net a gain of $155k, then I'd need to target a cash on cash return of 6.1% or higher (my current return on equity). 

This might be a stupid question but what happens if I have purchased a property from tax deed sale with a lien that I cannot afford?

If I have multiple people vying for this property, is it legal to increase the asking price for the rent the same way you would do with a sale?  

@Douglas Miller Big question is after you fix it up will you be listing with an agent/broker or selling FSBO (for sale by owner)?

Associate Brokers can run offices for brokers and manage people, Sales persons are employed at brokers.  

Im a single person...I have never 1031 exchanged anything before, so not sure if id have to do this to buy another without owing a ton of taxes or could i sell it and just be safe of paying capital gains with the sale being under the 250k for single limit?