After that is done, head over to IRS.gov and apply for your EIN (Tax ID).

Quote from @Joshua Alcantara: Quote from @Peter Walther: I've found many properties with title issues wind up with unpaid property taxes so checking on delinquent taxes, tax deed sales and lands available for taxes might help you identify some.Thanks, Peter, for the info!

The 15% tax hit is a one time expense, versus 4.3% is annual interest.

I can’t imagine the returns you would have to generate. 22% federal tax, plus 8% state tax, plus 10% penalty.

This would allow you to defer the capital gains tax, and instead of taking a large tax hit, you would be able to use the tax to invest in a nicer property/properties.

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

We plan to spend the next 6-12 months continuing to earn and save, as well as nail down a final market we want to househack in.

Tax Preparation, Tax Advisory, Accounting.

Consult your tax pro for more details or greater clarification, or contact me.

If you do not get that tax credit its usually not profitable.