The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

I want to take advantage of growth if possible, but also want to minimize taxes and fees (penalties).

I'm learning more about loans and such as I used the VA.

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

Dig deep into tax strategy, tax efficiency, etc  Learn about estate planning. 

It doesn't take long to learn how to spot a good deal.6.

Do you have a current need for that cash flow generated from the tax savings?

I am new in this game and here to learn everything.

It helps a lot with networking on here.Other than that, be a sponge and soak up as much content to learn the game.

As someone mentioned, the only thing passive about real estate investing is the tax treatment.