@Benjamin Aaker is on the money.Your income probably prevents you from using RE to offset your W2 income but you can still use deductions and depreciation to offset rental income.If you are looking to REI to reduce your taxable income on your W2 earnings REI won’t help much at all.One needs to be precise when discussing tax law.

According to @Jay Hinrichs, the back yard might be a separate S corporation as developer for ordinary taxable gains and the front part a 1031 exchange for capital gains. 

We can show you how to shift some of your investments assets from the taxable to the non taxable bucket.  

In April, shopped around a bit with a different agency, but they couldn’t find a cheaper rate.

@Cory J Thornton what you are looking at is Class A properties.Those aren't cashflowing for buyers anymore due to higher interest rates (they haven't historically either).If you compare new construction to existing Class B & C properties, it's almost always cheaper to buy than build.

I don't mean to be insulting, but private money is not cheaper than conventional financing unless you are getting a loan from a relative or close friend. 

I Know postcards are much cheaper than letters, and I know mailers in general is a volume game.

I know that South Jersey and the parts near Philly are way cheaper than North Jersey. 

I like home with mold, we can buy it for cheaper and make renovation is actually easier.Truth is you have to cut the drywall, also check the windows and so on.

Or would that result in a taxable event because my mortgage would go from 150k to 0?