I guess they are buying tax sales or they are buying from owners that are tax deliquent and don't want the lots.

I teach my clients to have all the expenses on auto withdrawal  ( mortgage payments, monthly assm, if needed: tax and insurance) and have the phone number of few handymen on speed dial.

Are there any taxes?

Plus there are also great tax benefits with REI.

I am just baffled how an Island with an average income of 19K has a sales tax of 11% when the state of CT which is one of the richest in the US has a sales tax of 6%. 

Is this a possible asset transfer that will meet the tax requirement of a "like" property?  

I think Eric Lee at Proline Tax Advisors does it: http://www.prolinetaxadvisors.com/The legal filing with the state is essentially the same no matter who you use.

In looking up the tax records it appears to have been bought on a short sale back in 2013 for $85,000 and the owner took out a mortgage of $63,000.  

If you want to access some of the funds from your 401k for personal use (investments), you could utilize the participant loan feature, which would allow each participant to access up to $50,000 of your retirement funds, tax-free and penalties-free.

Some areas you can concentrate your efforts in are 1) Ruskin - New amazon warehouse employing several hundreds of people here2) Lithia / Fishhawk area - Great schools but beware of high CDD + HOA + Property taxes that'll eat into your COC return3) Winter Garden - Booming market in orange county, has a new hospital and several new business coming up.