I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

Sellers can avoid paying transfer taxes to the county, while buyers are spared from facing significant property tax increases.However, it's important to note that lenders typically only approve these loans for properties with five or more units.

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.

Any tax pro who is familiar with REI will be able to help you.

The only part that Property 1 pays on that loan is the escrow for property tax & insurance for Property 1.Thank you for your insight.You need to look at purchase price to determine cost basis, not how you financed the purchase.

For example, should we focus on acquiring one high-quality property in a strong market, or would it make more sense to spread the investment across multiple lower-cost units in emerging areas?

@Frank FloresInvesting in delinquent tax sales in Houston can be profitable, but it comes with risks.

But as far monthly payment you could easily buy a house in a cheaper location have less roommates and the same monthly payment or the same number of roommates and a lower monthly payment.

But if you're comfortable with rougher areas, then you can definitely find properties at lower prices.

Guaranteed others are fine with a lower elevation, but I do not have water run over my foundation inside.