@Russ Mooneyhan, to answer your question, and summarize a lot of the responses below: No, there is no specific tactic that people use.  

But, that has nothing to do with legality...that has to do with a deed restriction enforced by the attorneys closing the deal.Now, for any REO contract that doesn't specifically include a deed restriction on the resale, there is no law being broken by purchasing and reselling the property, even when it's done at the same closing table.Now, let's summarize...You claimed it was "illegal" to wholesale REOs.

Summarize every conversation that isn't in writing and have dates.  

To summarize, I'd digest all the information, study the data and then access probabilities to each possible scenario, viewing it from the lens of your own beliefs.  

Great video, love the way it’s summarized.

First read all of the posts above and summarize what your take aways were.  

To summarize from his comment, there is often significant judgment required on many issues and it will involve different professionals such as attorneys and accountants, and perhaps many others, so you'll often need to work as a team. 

My friend Keith summarized it this way:Appreciation.

@Vinay Sanapala, I am going to sort of summarize a lot of what others said.I had a small portfolio of about 6 section 8 properties at once.  

Even if it is used to purchase the property via an entity, the loan is effectively connected to the property and directly deductible against the income.To summarize what I'm saying is it doesn't have to be taken as a deduction on the 4952.