Just curious what is the long term plan as far as minimizing tax in later years as the account in pre-tax become huge?   

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There are some great tax strategies for short-term rentals, but very important to be aware of the personal use rules to make sure 280(A) doesn't become an issue. 

In San Jose I think that lowers the school fees cost/taxes etc.

But you'd still haev the benefit of lots of costs spread across 7 or 15 years vs. 27.5 Work with a tax professinal becuase this is a tricky situation. 

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

So he paid the tax's for 5 years then went to court and prevailed and ended up with the property.

Are their caps on real estate taxes?  

Inspection Costs - $400 Lender Fees - $1,000 Closing Costs - $2,000 Mortgage Payments - $2,500 Property Taxes - $600 Utilities - $1,000 Insurance - $200 Commissions - $4,000 Selling Closing Costs - $4,000 Home Warranty - $500 Termite Letter - $100 MLS Fees - $100 

Texas property tax sales.