Don't expect to learn complex issues with extremely significant consequences from online forums.

Serious consequences when dealing with foreclosures, both local and federal. 

if it is unsecured loan that is the consequence, you lose they entire thing. as far as tax write off, sorry but none.

However, electing partnership or corporate taxation could be seen as a sale, causing unintended tax consequences.

.🚨 Warning: If you advertise a 506(b) deal publicly, your entire offering could be invalidated, leading to legal consequences.2.

Tax-Free Exchanges: While 1031 exchanges aren't available to SDIRAs, the tax deferral within the account means you can sell property and reinvest proceeds into new opportunities without immediate tax consequences.

A good real estate accountant can save them thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend that they find a tax accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.I would also recommend that they look for a accountant willing to work with them throughout the year, who can help them strategize and who is responsive when they want to know the consequences of the financial decisions they are making throughout the year.Good luck.

Maintenance/cap ex, insurance, if a rental PM, bookkeeping, misc.The fact you have a loan means 1) leverage 2) equity pay down.In addition, there are tax benefits.So I will do some rough underwriting as an OO non-rental at 95% LTV (because FHA has some undesired consequences that make the 1.5% difference in LTV worth avoiding the FHA).equity paydown: 20% (using OP interest rate at 95% LTV and not counting closing costs). 

Given the renewed concern of fire following LA’s fires and the potential insurance consequences, we have begun discussing the potential of reconsidering owning in the area. 

Consequently,  there's rarely enough of a deviation in price between these auctions and what you can buy on the MLS/elsewhere with full diligence capabilities to make these transactions worthwhile.