USAA does have an agreement with a third party company, but they were much more expensive for much less coverage.

I would offer that you place a third party manager that is acceptable to the seller in lieu of a bond.

And I have touched base with other PM's in my target market area just in case, you know, as part of due diligence....I stand by my original post with the clarifications noted above. 

Getting cash flow is fun but always remember about protecting yourself from the legal stand point.

Your question is pretty simple yes it would be a leasehold estate and you have no standing in refinancing the property until you exercise your option  and actually purchase the property Then you would be able to use the new rent rolls on the purchase 

Homeowner Association Information Request2.what statements define the terms of an agreement and give the other party cause to void an offer if the terms are not met?

Now you negotiate to come to a point that both parties are happy.

They must pay the same as any other redeeming party--12% interest per year on the taxes due plus 12% on the overbid, up to 15% of the overbid (example below).

I talked with the sheriff today and he said the sale should stand but the attorney can contest it through the courts.  

We haven't tried bringing private investors and third-party money because we want to gain more experience before doing that; we also have enough capital to invest for ourselves, as long as we can get financing to get a higher cash on cash. it just doesn't make sense to go hundred percent equity into rental property.