If it sits vacant and you are paying a mortgage, insurance, and taxes on a deal, I agree it wouldn't make sense.

I have so many people who bought a parcel at tax sale, so thrilled with the deal they got and then when they bring it to me, I usually find development constraints that make it clear why the last person abandoned it. 

The deal is appealing because the price point is more within reach than what is available here in NJ.

I am acquiring an assisted living home (RE+business).RE appraised for $1,320,000Business for $80k.I have the RE portion already financed through banks but am needing $80k for the business to get the deal done.I’m looking for $80k short term loan for at least 6 months so that I have enough time to get a more stabilized business loan.

What made you interested in investing in this type of deal?

Your lease should address tenant lease violations and what fees may be owed to cover your administrative burdens of having to deal with tenant violations.

We won't settle for just any deal, though.

or are you OK with leaving cash in the deal?

Id be real careful with wholesalers bc you are getting to the point where there will be a temptation to deal with them. 

Quote from @Michael Morrongiello: That is also my understanding as wellThe junior 2nd lien gets wiped out it gets  wiped out from that property but the debt remains with teh borrower.. although unless its a commerical deal with a PG rarely do banks go after the borrower just based on the note.