Presidential candidate Joe Biden has also said that he will not raise taxes (nor eliminate the 1031 Exchange) for those taxpayers that make less than $400,000. 

They are living it up with free tax payer's money (more money than they would be making if they were working full time).The landlords get thrown under the bus here in California. 

Also, we're concerned about the risks we've never had to deal with before, such as: 1-how do we ensure he properly pays his mortgage and property tax payments while we rehab and not pocket the money instead?

This works well if you are going to have a big income tax payment due after selling.

@Ramsey Rimkeit are you looking at the assessed value or the actual tax payments? 

QIP (qualified improvement property) defined by IRS code section168(e)(6) as “any improvement made by the taxpayer to an interior portion of a building which is nonresidential real property if such improvement is placed in service after the date such building was first placed in service.”The intent of the TCJA was to treat QIP as 15 year property.

The IRS has been sending a bunch of letters 4883C requesting taxpayers to call 800-830-5084 and verify their identity.

They can say, all RE deductions are taken at 15% even though the tax payer is in the 30% marginal tax bracket.

It is perhaps the number one or number two mistake I see DIY taxpayers make -- electing S Corp when they really shouldn't.

Get actual rental comps from agents, use actual tax payments, actual utility payments, etc.