Water rates in the area are high and also include sewer based on the amount of water used.

It shouldn't change anything, as you need to get the home for the amount that makes the deal make sense.

I drove around neighborhoods (driving for dollars) and collected a good amount of addresses. the problem i am having is finding the owner of these properties.

You'd also have to consider selling or renting your current house.There are other things you can do with that amount of capital, but these two seem to fit your stated goals best.Feel free to give me a call if you want to chat.You should check out the local meetup too, you'll find a bunch of locals (and vets) that are already actively investing. https://www.biggerpockets.com/forums/521/topics/59...

I have a decent amount of money saved already, and with my M.A. in Education pay bump that brings in an extra almost $60k a year before taxes.

Congratulations on getting yourself to the point where you know you want to invest in Real Estate - and also with a good amount of cash on hand for someone only 20 years old.Depending on your credit and job history, you could qualify for other type of loan programs, too.

I figure my credit card statement retains the transaction amount, so I figure that will cover me. 

I believe we are ready to make some serious efforts to realize our path to financial freedom.So now here we sit with a small, but useable amount of capital and the will to invest, but a little lost.

Just pay off the lien holder the tax amount plus the overage etc.  

Another option is to do an SBA loan and you'll only need 15% down, you'll probably get a better interest rate and 25 year fixed rate on 1/2 of the loan amount through SBA.