I have suspended Passive Activity loss that would reduce the gain, but not eliminate the gain from tax POV.

A local broker/investor has recently bought a tax lien for the house next door to us.

I don't want to pay any more than 1500 a month for mortgages and insurance and tax.  

Would be impossible to make numbers work at 9 months with our (insane) property taxes.

I have a side business doing tax returns for real estate investors and property managers.

Taxes are based off what you paid, and I've bought several in the 90-150k range that with rehabs are appraising in the 400-500k range. 

However, the mortgage and taxes are too high in this home to go that route. 

While the homeowner gets to take the revenue and real estate tax benefits.

Learn issues buying tax properties.4.  

I was at a CCIM luncheon recently and some of my lender buddies and I were discussing that many of their banks are getting out of multi-family because of rising costs to manage the properties...including taxes and insurance.