., mobile homes often lose value over time unless they are situated on owned land) and tenant turnover.However, tax advantages include depreciation deductions, which allow you to offset rental income by writing off the property's value over time, and cost segregation, which accelerates certain deductions.

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.”Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period.

In most cases, the rehab money is interest free until you actually draw the money and if you never actually draw the funds, you won't owe the money when you go to pay off the loan.

Note - if you live in your property for 2 years out of the last 5, then you don’t pay taxes on the profit. 

Non pay of prop tax's non pay of insurance  Waste, etc. 

Also Seller hasn’t paid property taxes in 2 years which is a sign the property is in distress.

Whether you're looking for short-term rentals, long-term rentals, or fix-and-flips, Florida has something to offer.Favorable Tax Environment: Florida boasts no state income tax, making it an attractive option for investors looking to maximize their returns.Year-Round Appeal: Unlike seasonal markets, Florida offers consistent rental demand year-round.

That alone can kill a deal due to over the Max DTI limit.A cash out refinance is tax free and its an immediate liquid reserve so it can be used as an Asset or PITI reserves.

How is it a tax strategy though?

This means we don't require paystubs or tax returns, and we don't consider your personal debt-to-income ratio.