I think these zones have the potential to be the biggest tax incentive since the New Markets Tax Credit - the potential tax savings could be enormous.

Section by section.Also any personal experiences on strategies used during closing would be great.So far I've learned about:What it means to sell "AS-IS" therefore stating the cost of repairs would be at the buyer's discretion.Also, including the cost of transfer on the seller and buyer, respectively (especially with PA's transfer tax law).I also understand getting both agreements notarized is wise.If there's anything else that I should be aware of, please let me know.Thank you in advance for all your insights!

I've been noticing some celebrities that buy houses and then they list them for what might be break even or a loss even after paying real estate commissions/closing costs, property taxes ,maintenance over the time they owned it.. .and that's not even taking into account the massive amounts they likely spent on renovation.

No, it’s either 1 tax id no., or it’s 2.

Escrow the HOA and the taxes as part of the monthly rent payment so you know they are getting paid.

Taxes are really the killer for rental investments in the area though where most properties that are undervalued get purchased by homeowners looking for fixer uppers and outbid most rental investors unless your willing to sacrifice your returns a bit to have a rental in this quality of an area. 

-Gross Monthly Operating Income3,291.75 Monthly Operating ExpensesProperty Management Fees347.00 Repairs and Maintenance200.00 Real Estate Taxes250.00 Rental Property Insurance298.81 Homeowners/Property Association FeesReplacement Reserve50.00 Utilities150.00 AdvertisingMonthly Operating Expenses1,295.81 Net Operating Income (NOI)Total Annual Operating Income39,501.00 Total Annual Operating Expense15,549.72 Annual Net Operating Income23,951.28 Capitalization Rate and ValuationDesired Capitalization Rate8.00%Property Valuation (Offer Price)299,391.00 Actual Purchase Price167,500.00 Actual Capitalization Rate14.30%Loan InformationDown Payment33,500.00 Loan Amount167,500.00 Acquisition Costs and Loan Fees6,000.00 Length of Mortgage (years)15 Annual Interest Rate6.690%Initial Investment6,000.00 Monthly Mortgage Payment (PI)1,476.66 Annual Interest11,002.25 Annual Principal6,717.63 Total Annual Debt Service17,719.88 Cash Flow and ROITotal Monthly Cash Flow (before taxes)519.28 Total Annual Cash Flow (before taxes)6,231.40 Cash on Cash Return (ROI)103.86%

I have very low paid expenditures, currently the property tax is $1,100 annually, I pay 65$ in insurance and I am setting aside 7% in capital expenditures, best of all no mortgage.

Yes, clean your credit, but also keep saving v Remember that your lender will want to see six months of PITI (principal, interests, taxes, and insurance) in your reserves in addition to your down payment.

Do you have tax returns that show you are earning money from other investments?