If the purchase is done in cash, as you mentioned, they’d have more flexibility, but they’ll still want to carefully consider the tax and legal implications of the subsequent sales.I hope this helps, and good luck with your client’s deal!

Worse case I just continue to manufacture them through my fix-n-flip business and buy with seller financing where available.Also, is tax lien investing really viable today? 

BRRRR, Fix Flip, taxes, deal analysis, market analysis, marketing, financing, etc.  

That's $1,600 per month plus to pay debt, plus at least $400 in taxes and insurance.

Thats $7700 a year NOT including my accountant/Tax prep. 

That's 50k a year gone and you are losing tax write-offs and equity potential.

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

You want an investment that pays for itself, including mortgage, taxes, insurance, maintenance, and even some money set aside for a reserve to cover vacancies and capital expenditures.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.

How does this look from a tax perspective.