Right...1st I would say the tax sale wiped out any liens. 

@Charles Perkins is absolutely correct about "collecting all receipts, properly tracking all income and expenses and your basis for all assets properly documented and recorded."

I am looking for a firm that has experience appealing property taxes for residential homes in Detroit, Michigan.

I agree with @Isadore Nelson, there will be an initial sting due to to the IRA transaction but with quick math at 8% your 60k will generate about 4.8k in year one, in 4 months at 1.3k you've already eclipsed that, their will also be a larger tax for passive income and an initial penalty from the IRS, but it won't erode the 8 month difference let alone the yearly compounding effect.

Do they have other sources of income for retirement?

This is not tax or legal advice.

.- Sold it for $915K after 5.5 years (received $442K at the closing)- Did 1031 exchange and bought 8 SFH in NE & AL worth of 1.6M (brings $4k/months income now) What made you interested in investing in this type of deal?

Any tax knowledge of if people doing this strategy are able to take the losses from the cost seg study (on the ADU) to offset their W2 income?

This is because REPS reclassifies rental losses as non-passive, allowing them to fully offset active income.

I have just received a draft of my tax return with the schedule E.