You also don't have to pay state tax on income. 

Can provide all the benefits from a cash flow and tax perspective.

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

.$275000 with 25% down, taxes $4080, insurance is 3000 yr and rents is $3800 month, Water $400 mth. 

Preferably low or no money down as best seller would be one only interested in the monthly incomeI then sell said first property and take that cash to buy the investment I am really wanting and I get the terms I want.only thing I don’t know about yet is, how to dodge the tax on the sale of the initial property?

If you can rent it for $2,000/month, after fees, taxes, and potential maintenance costs, you’d still make a decent passive income.

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? 

This allows us to close extremely quickly, which is an important competitive advantage.I don’t know how to read our own tax returns, and I’m certainly not going to read yours.

We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it.

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