If I get this loan at 824 plus the 350 for taxes and insurance and then hazard insurance at 240 that's $1414 a month subtracted from 2025 leave 611 of cash flow per month. 

And the taxes and insurance I can subtract due to write during tax season right .

The mortgage balance has absolutely nothing to do with what the property is worth (as you - and they - know); … quite the opposite… that figure has to be subtracted from the value of the property before the estate even starts to see a dime to give to the beneficiaries….

Just run the numbers.Take projected income based on occupancy and night rate of similar properties on Vrbo and Airbnb,  subtract expected expenses guessing on the high side.

Record keeping is essential since profit is what you paid plus what you put in (every receipt counts) subtracted from the sales price . . . . so the better your records are the more you can offset the sales price and the less you pay in taxes but without records, you have no leg to stand on

Passive activity loss (PAL) restrictions are not for bonus depreciation per se, but for an overall loss that is a result of subtracting ALL expenses, including depreciation, from rental income. 

This is calculated by subtracting the property's operating expenses (such as maintenance, repairs, insurance, property management fees, etc.) from the gross rental income. 

So when the title company runs their searches they would find the back taxes and it would USUALLY be the seller’s responsibility to clear those up in a regular purchase transaction and they would be subtracted from the seller proceeds.if being auctioned by a lender, the lender would have already paid the taxes each year to protect their interest in the property and those fees would usually have been included as a part of the minimum bid required for the lender to recoup their expenses.  

Then you subtract all of those costs and the cost of sale to figure out if it makes any sense to worry about it.  

When the property is sold they will actually have a loss to report because they take the value of the property on the date of the owner's death and can subtract commission, closing costs, etc.