You could look into forming a C Corp as an alternative way to own this property that could affect your tax returns differently, I am not a CPA or giving tax advise.

It couldn’t be coincidence that he finally started work, the day after I asked for the lockbox code.

At a high LTV your leverage will be magnified.If your cash flow really is break even (I have my doubts) then with the magnification resulting from leverage, you could produce a fairly good return (ROI from leveraged appreciation, equity pay down, tax benefits).Good luck

The home burns and the incredibly over taxed CA FAIR plan has either gone bankrupt or takes years to pay out.2.

You'll likely want to evaluate the investment with UDFI tax figured in.The Solo 401k trust would make the payments to the seller/lender and would also pay for any investment-related expenses.

After closing, when the property taxes were due I never received any bill.

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

So you are able to get the cash flow, tax deductions, etc.

This might make sense, but again, you are just deferring the taxes and now pushing tax from capital gains to ordinary income. 

Pretty much think of a commercial loan process as a residential loan process backwards.Lenders do go off the income of the property, but they also do check out the purchaser...3 years tax returns and a personal financial statement.