One thing I would add is watch for the property taxes.

How do you plan for property taxes?

Looking for any ideas on tax strategy here.

Are they going to be able to buy your proudly done flip.3) If you misjudge the market, do you know when to dump it.4) Can you put a spreadsheet together on your purchase costs, carrying costs, rehab costs, closing costs, selling costs, tax costs, contractors that don't show and delay your project etc. etc. etc.5) Is the return worth the risk.

@Robert P. thank you for that info about how it is done in Mass  i will look into that info for NY@Matthew Paul i purchased the property for cash, so as far as not having income i will not have a mortgage to pay for, the reason money is tight right now is because i had to pay school taxes right after closing, and then spent $17000 on a roof the first month. 

But Stuart has better property taxes.

Does anyone ever buy the tax lien/deed on a property for personal use (i.e. to actually live in the house)?

The taxes will be relatively high in these areas and will affect overall cash flow.

You are not making any gain, so there is nothing to be taxed.

folks - I am unable to find profitable opportunities after factoring in all costs including property management and taxes in NJ in desirable areas.