Here are 10 tax tips every homeowner should know:1️⃣ Mortgage Interest Deduction: Deduct interest on loans up to $750K!

Prepaid items are comprised of property taxes and insurance and prepaid interest.Property taxes and homeowners’ insurance will depend on whether or not you have an escrow account, when you are closing, and when those items are due.

Also, I’m not into tax evasion necessarily but she’s owned the place forever and has minimal taxes.

My down payment will be just as much as he still owes on the property, some small expenses, and maybe some prepaid taxes.

The crazy thing is - insurance costs have increased significantly here and property taxes just went up as well.

And the IRS will ignore it for tax purposes.

I was on a Senate Steering committee way back in 85 on how to deal with all the platted antiquated lots in CA. there are millions lots created before the modern rules and these lots exist today but many are not buildable and are traded back and forth from tax sale buyers to retail buyers who dont realize their 5k lot in CA is non buildable.So there was a big conference in FT.

I’m not saying you have a bad deal, or I wouldn’t buy it if it was located somewhere warmer without income tax.

You also qualify as REPS, so your flipping income could be tax-free if you really strategize well.

These homes may have tax liens or other issues that could lead to foreclosure in the near future.