There is a path of progress barrelling along the coast and the area was still thriving when the country (and especially the South) was in recession.Gentrifying areas of Sao Paulo for micro condos.

Let's assume you buy a house for $115,000 with 20% down as investment, at an interest rate of 5%, so the loan amount is $92,000 (almost as much as your balance on your student loans), wich will bring you a monthly mortgage payment of $494 + property tax $200 + property insurance $100, a total of $794.00/month expense for this home.Let's further assume that you are renting this home for $1400, that will give you a $606 cash flow per month.In the same time, you will get to amortize the $115000 for over 27.5 years, meaning that $4182 will be deducted from your taxable income, and if you are in a 25% tax bracket ( and I bet your in a higher tax bracket based on your income) you will save about $4182 x 25% = $1045 per year, plus, out of the $494 mortgage payment at the end of 12 months your paid about $1500 in principal, meaning your $92000 balance on the loan is down tot $90,500.So let's see, after the first 12 months, you have a home that if it appreciates at 3% a year, you are in the following situation:Home worth: $118,450Balance on the loan: $90,500, ( paid off$1500)Cash flow: $7,272Saved on tax a min of $1,045So at the end of the year your $23000 down-payment brought you back:$3,450 in appreciation$7,272 in cash flow$1,045 in tax savings ( minimum)$1,500 in principalTotal of $13,267 in cash you gained in 12 months for an investment of $23,000, so you can get your money back in less than two years.Imagine taking this to the next step of using the 75K as down-payment for a 3-4 flat with more cash flow, more tax deductions, more principal gained, and higher appreciation.

Thank you very much.My mother and I are functioning entirely within CA, and the cost basis, for her house, is $305K, It is now worth $850K; therefore, if she gifts us the house, future additional housing increases will incur capital gains tax (as the capital gains are already in excess of the $500K exclusion). 

http://www.investopedia.com/terms/o/origination-fee.aspThe appraisal fee might be a little high, but then you have a multi-unit.The title charges in total seem like they might be a bit high for the cost of the property - but that is sometimes regulated by gov't in some areas.Transfer tax = a local gov't charge.Tax Service fee = fee paid to assure that taxes (and possibly municipal utilities like trash and sewer) are paid.

Sell what you have and move out of state, and don't ever come back.There are states with low to no income state tax as well as low property taxes.

That will likely trigger a transfer tax as @Steve Babiak mentioned.

From tax perspective, I would like to employ as aggressive tax as I can,according to the tax books I read,it seems that I should deduct any expenses which contribute to invest,but if I really do that,is it means that I am actively involved in the business?

I was thinking of just paying the 10% penalty and tax, as I see stocks back at the same dangerous peaks hit in 2000 and 2008 (go to Yahoo and map the Dow going way back in time to now, and consider if we are in good or bad economic conditions).

One way to accomplish that is to make it a flat rate tax a point of sale at 10% to 20 %.

Because that means I am maximizing the total amount of money I keep after paying that tax!