There's zero reason to do this when there are plenty of options to avoid it. 

This would end up getting you some tax benefits and extra cash flow that could help you leverage that into another property...maybe a 1031 exchange.

Options are very good, just need to avoid sharp dips because I am wagering about 1k at a time and any bad luck and I lose the entire 1k.

What are true returns for comparison, before or after Income taxes? 

I assume they collect a proration every month for property tax?

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

NY can work but watch for high taxes and regulations.For $10K–$35K properties, expect heavy rehab and limited financing options.

So many variables can turn a deal sideways from 1 hour to the next - i.e. inspection findings, title issues, contracts, financing issues, taxes, dept. of buildings/local municipalities, etc.I'm glad to hear you made it through the challenges, and it sounds like you'll be able to leverage this experience as you grow your portfolio.All the best to you along your journey!

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

To defer all tax you must purchase in total at least as much as your net sale.