The absolute lowest income tax strategy isn't always the best for the taxpayer.Regardless of the path chosen, OP should definitely consult a pro who can examine facts and circumstances, as well as goals.

Best to speak with an attorney and CPA who can examine your individual facts and circumstances.

It sounds like he's using a percentage or general rule which rarely stands up upon examination."

I think you should examine your projected rent amount very closely.

I have just finished taking my Salesperson exam in NJ(I passed thank gosh!)

So far, I've gotten on their mailing list and have examined a few of their deals but haven't gotten any farther.

Sad to see it removed, but rules are rules....I'd like to see it continued/re-examined, but this time simply in light of generosity in general not tied to any other type of organization.I believe that people who are generous have a way about them that tends to draw others toward them, which is helpful in business where net working and establishing relationships built on trust is important. 

Your next problem will be finding the time to examine all your leads to discover which ones are worth pursuing or not. 

I think you're ready to purchase a tax-deed the major down-fall is that too many foreign investors and small capital groups come in and buy the best properties near or above market value....There's a bunch of posts on tax-deeds its just you have to spend sometime  learning how to title examine (this is a key skill you will have to learn).1/2) These properties are being "foreclosed" by the local government - in general its state specific for instance in FL it is true they can be redeemed until the second before sale however after you're pretty much done for (however if its a valuable property and any of the previous owners in the chain of title have a bit of cash to throw around you'll be forced to defend yourself in court which can be pretty expensive).

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.