The only part that Property 1 pays on that loan is the escrow for property tax & insurance for Property 1.Thank you for your insight.You need to look at purchase price to determine cost basis, not how you financed the purchase.

You'll be able to defer a bunch of tax with this purchase. 

I really think that this is not necessary (with all due respect @Jonathan Greene)The forum is great and works just fine IMO.

To save those costs, you might want to stick to some year build and older, for example, if you cannot do inspections on the properties that you are buying due to off-market deals or something else that is hindering you (all sellers I buy from do not want anyone in the home till we close).

Ferd Niemann is a popular lawyer for MHP transactionsMake sure to take your due diligence very seriously and get professional help if you don't have experience here.

Hard money lenders are much more like banks and come with many restrictions, requirements, due diligence, fees, etc.

It’s a tax office, so I suspect they might be waiting to see how their business performs and the impact of technology before deciding.Thanks in advance for any advice or insights you can offer!

The Numbers:Cash Flow Analysis: Investors typically look for properties that will generate positive cash flow—meaning the income from rent covers the property’s expenses (mortgage, taxes, maintenance, etc.) and then some.

I would say pay the taxes.  

I put the odds at 97% an investor does very well, 2% that through no fault of Praxis' the housing market and/or the economy enter a tail-spin due to inept political leadership at the highest levels, and 1% that Brian is the biggest fraud ever to fool me.