Here's the key components to calculate your tax liabilityAdjusted cost basis - Is the purchase price, plus capital improvements, minus depreciation.

Quote from @Jarrod Ochsenbein: I purchased an existing Padsplit with a DSCR loan. 

House hack another property with a low down payment loan and use the remainder or the proceeds to either renovate or purchase another investment property?  

Purchase price: $255,000 Cash invested: $60,000I bought a condo back in 2019 in Ashburn, VA as a rental property.

Or explore a 40B lottery condo purchase and look into house-hacking.

I will give you my numbers since we are 3 years into Velocity Banking.Home was purchased at $410k.Interest rate: 3.125%30 year termMortgage payment is around $1950 (includes insurance and property tax)HELOC: 8.25% Variable rate - current rateCredit Limit: $97kLet's say I made $10k a month and our expenses were $6k each month including the mortgage.

I am looking to purchase more rental properties in the near future.

Quote from @Daron Williams: I just invested in a tax deed here in texas it was a beautiful lot right on lake sam rayburn. i have it on the market for sale the only problem is you have to have two lots to build on.. i found the person that owns the lot to the right of me and there willing to possibly sale there lot the only problem is i dont have the money or the credit  to purchase it.

You start with a purchase and sale agreement and reduce everything to writing.

In my opinion this will not lead to long term success - if that is of any interest to you focus on saving up enough to purchase your primary residence.