But I’d like to be cash flow positive even if minimal.

So, this is putting him in the position to have to look at the possibility of doing a 1031 exchange on the 2.5 - 3.0 million that would otherwise be taxed at capital gain rates (he wants to avoid paying Uncle Sam at all costs).

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Can I have the seller in a second position note for the remaining 300k or less.  

I just moved here from the Boston area and it seems like the real estate taxes will make coming out of a deal with positive cash flow a very tricky endeavor.Jay

Our guests are booking an experience, not real estate.Also I have to believe even in other markets, (if you’re not in the position to rent a treehouse or a giant potato as an STR) one way to set your place apart is by having at least one highly themed room.

If you're priced out of your current market, I would definitely look into other markets where you can find great macroeconomics, positive cash flow, and amazing appreciation potential.

My clients love it here in Columbus OH because of positive cash flowing deals that also have a ton of appreciation potential.

I will update this post when I get the final result on the deposit. thats interesting every time I have had an issue with an Actual auction and the authority wanted to cancel we got all out money back they never kept anything.I did have wells fargo sue on one though were the bank claimed priority over our position we bought at foreclosure sale.. we had to settle that and pay..

Would love to know if you think I'm missing something here, or what other options you think someone in this position could explore to start getting their feet wet and moving forward in the near term.