You can probably beat $2000/year insurance, but the management fee should be 10%, you need to factor in turnover too and 5% is probably not enough for both maintenance and turnover and I assume you added it, but you didn't mention property taxes (which have been terrible in Jackson County lately since Frank White decided to jack them through the roof). 

I'm wondering if some one can help with an explanation about why a Hotel has many rooms with tax lien on auction? 

For tax purposes, rental income is generally recognized in the year you receive it, not when it is paid.

Texas is very landlord-friendly and also does not have income taxes. 

Bonus - the interest on the loan is tax deductible!

@Shiloh Lundahl Awesome, thank you ok so having that 10-20k as a buy in is important, to first getting into it.... it helps get those first deals started.... just as an aside : I am also just starting out doing finder's fee methods - with tax foreclosure overages refunds, and assett recovery / state funds refunds... so I think those can help me to get that intial 10-20,000.... it might take me some months, but I think I can get there.... that's my initial plan, at leastAnd if I can get that saved up, then that will help me break into deals....

Secondly, the homeowner would need to cooperate as she would need to submit a bunch of paperwork including income statements, tax returns, etc. for the Short Sale application to show that she is insolvent.  

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

By and large, QI's have very high ethical standards, and are sometimes overlooked as the engines of this tax saving tactic.]REPUTATION MARKERS 📊INDUSTRY STANDINGMembership in professional organizationsLeadership roles in FEAEducational contributions to the industryRelationships with major title companiesCLIENT RELATIONSHIPS 👥Testimonials from CPAs and attorneysReferences from title companiesLong-term client relationshipsTransparent fee structuresRELATIONSHIP RED FLAGS 🚩Overly familiar with your realtor/brokerKickback arrangements (illegal!)

(It doesn’t pay its own taxes.