Owner’s Draws and Tax Implications: Taking owner’s draws to recover your initial equity is possible, but this can have tax consequences.

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. 

Aiming for each part of the business to eventually fund itself is a solid plan, and a real estate CPA or attorney could help fine-tune everything for taxes and structure.

Look them up on the tax records for free and then use a free site like Spokeo to search info on the owner.

I will be purchasing the properties in cash, likely from mortgage or tax deed/lien auction.

This was purchased in December 2023 and I am trying to Tax plan for the coming year.1.

So be careful and make sure you interview the Expediter and that they have had success in obtaining the Letter of No Objection.As far as evidence that you need to gather, look up your buildings TAX Class.You will find it here: Building Information SearchHere you will see something that looks like this:NOTE that while this is a Dept of Buildings Web Portal, what I have circled in RED is the Department of FINANCE Building Classification.You may not have a CofO, but the Dept of Finance maybe taxing you as a 2 Family.

Fortunately, you will be able to to a 1033 exchange into new property and avoid any tax on the gain. 

I dont have experience buying but have looked into it, from what I can tell, if you buy it at a tax auction, The owner has a certain amount of time to reclaim the property.

Wells Fargo initially quoted $1M value at for the house so they said $5.5K for the county tax (.05%) and $13.1K (1.28%) but a total of $18.6 in taxes but that seems really high