Who covers the tax bill when they don't pay the tax bill or the insurance? 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

Liquidity is important if this is money you plan to put to work in the near term. 

Most hard money lenders require 10-20% down payment of the purchase price or total project cost.Holding Costs During Rehab: Yes, you'll need to cover carrying costs, including hard money interest, utilities, taxes, and insurance.

Some properties actually lose money each month but gain value through appreciation.

I buy real estate but I carry debt which is actually tax deductible, my money works for me.

For those of you who are starting out and want to learn more about real estate depreciation and cost segregation! Cost segregation can be a complicated topic, but I tried to make it simple and easy to understand!
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Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

And you would get to indefinitely defer all tax on the gain from the sale.