I think a new administration brings new ideas and new people.

You will want to fully understand the tax reporting burden you will face. 

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

Taxes: Be aware of potential transfer or capital gains taxes, depending on your state.4.

Now, this would obviously be negatively cash flowing since you would need to pay taxes and insurance.

I didn’t see your location in your profile or your post, but assume at least 17% state/federal taxes leaves you with $10k/yr. 

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

Sell, get the tax savings while you can.

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.