To get this, I’m paying them about 10% over asking price in total purchase consideration, but the terms and monthly payments are so favorable that it really doesn’t make much of a difference.Although I’ve read extensively about these deals, this would be my first and my big question is around the taxable basis of the property.

The cost would be a lot less to acquire and the monthly expenses would be considerably less too.  

Prioritize your financial situation, the local market, and interest rates.In conclusion, there are unique considerations for every investing approach.

Rental properties can indeed provide a steady income stream, and it's fantastic that you're exploring this avenue.Here are a few considerations and steps you might want to take as you move forward:Market research: Keep looking at possible multifamily buildings in the Augusta, Georgia region.

A new city heights affordable housing project has gone up at a cost of over $800k per unit.  

At the end you have a rentable property that is considerably less risky as a first time project than a fix and flip.

:@James Hamling I agree with everything in your post except the tax consideration.

I'm guessing a considerable price hike will take place and will have to pass it on to the tenants.Thanks for any help. 

Are we still expecting a considerable drop in rates, or are rates higher for longer?

There shouldn't be double taxation because rental real estate normally operates at a tax loss.The potential time that there will be a tax consideration is when you sell the property.However, your resident state(MN) will provide you a credit for taxes you pay to a different state.This will avoid double state taxation.In general, California state taxes are higher than Minnesota state taxes, therefore, you will be paying the higher of the two state tax rates, which is California.