Use tax benefits like depreciation, repair deductions, and tax-free refinance proceeds to offset income, and consider an LLC for liability protection.

I was just reading Mark's book "The Tax & Legal Playbook" this morning and it specifically had a "critical warning" (page 31&32 in Chapter 3).

(d) retained earnings from depreciation use to lower tax burden. 

I understand that I need to account for taxes, insurance, and other costs—Should I go with a LML and then do a refi later on?  

The property tax is higher than other markets, but generally, the numbers still work. 

Does he understand, Deeds, Due On Sale, Insurance, tax implications, servicing, contracts and so on?

I’m sure you won’t be verbally assaulted about how greedy you are Basically they were gifted $60-$120k tax free. 

Investors get stuck and cannot cash out because of tax complications.

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

If you can rent it for enough to cover the principal, interest, taxes and insurance and still put money in your pocket, plus cash flow on the property you're purchasing, that would be ideal.