@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?

Couple other things to consider, property / school taxes are high, and tenants have lots of rights.

Make sure your financial advisor understands real estate taxation, financial planning and tax planning. 

I also want to learn about purchasing properties with tax liens / bankruptcies / foreclosures.1.

Make sure you do your math correctly when analyzing property taxes…they will be eye opening.

Tax Preparation, Tax Advisory, Accounting.

But if I put the money into buying a house, with the leverage of a mortgage loan, I can still earn about 11% annually on my investment on the appreciation, even though there is no cash received for the rent.

My duplex - built 1989, 2,060 sf, 2 bed/bath, 1 year old roof, value if I subdivide (county already approved) and sell each separately $150k each ($300k total)Investor duplex - built 1995, 2,300 sf, 2 bed/bath, 5 year old roof, value around $310kThe investors initial request was for an equal trade and they would pay realtor fees, which I replied wouldn't be equal due to buying/selling costs (recording fees, title insurance, closing fee, survey, inspections, loan fees, 1031 fees, accountant fees, repairs), taxes would increase due to new sale price, I'd trade a 3.75% mortgage for a higher one, and I'm on the 10th year of a 30 year loan so resetting that to a new loan would restart amortization and pay more towards interest.

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

The account does not have to be an interest bearing account but if it is, then a portion of that interest earned has to be returned to the tenant annually.