Note the property tax will be -10% on the rent by itself.Month 0 to 24: $2450 * 0.5 - $1573 =-$348/monthMonth 24 to 60: $2450 * 0.5 - $1541 =-$316/monthNext issue is due to the low leverage starting at month 24, the ROI takes a beating.  

Pretty much the same except you don't own it and would need consent to make changes.Also the owner gets all the tax benefits as they are the owner. 

Hi Ricky,Being in operation for 10 years with mid seven figures of assets and NNN leases,it would be wise to speak with your tax advisor regarding if the tax set up should be an LLC, an S-Corp  or a C-Corp.It would also be wise to speak with an asset protection attorney to find out if this is something that might be beneficial to you in that area.

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

He is a realtor that I previously purchased a small portfolio from and therefore had a good professional relationship.

BTW behind Texas.When all forms of taxes are calculated (income, property, and sales tax), CA ranks below the middle of the nation in total tax rate.  

The patent on the 30 year with taxes and insurance was 3900 or so.   

How is it a tax strategy though?

Invent a global tax (Carbon Tax) and invent a token of credit against those tax's (carbon credits) and shazam a market where traders can buy, sell trade, option, leverage, hedge against these and the flow of them.

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.