I plan to give my all to working these projects so I'm not readily going to accept not making money for the effort I expend.

What the househacking near you will do that the mid-west won't do is: 1) keep it local where you can see it - maybe giving you peace of mind2) allow saving on management costs by self-managing; or...at least keeping a closer eye on your manager if you do hire, which I recommend with full-time jobs.3) allow you to likely live for free or close to it - all that extra money you were expending each month on rent / mortgage can do directly back into savings to repeat the process again.

Hi everyone, I know that when you work or expend money on a house that you got from a tax deed in Alabama and is redeemed you get back your expenses but what about a tax deed that is just land with trees, do you get back your expenses if you pay someone to cut off some trees or clean up, what about if you pay for water service and electricity to be installed, or if you pay to move a mobile home to the land and pay for a septic tank and the owner redeems the lot or land do you get back what you expended

If so for #2, will the rental income be tax free until the passive losses are expended?

Is replacing the roof a deduction for him...or an expendable item that depreciates for me... or both? 

More importantly, your attitude and momentum are fantastic anchors to take you to the next level, but it will be wise for you to expend all that energy through the legal channels. 

I'm currently only researching and it'll probably be a year or so before I have much in the way of expendable capital (also, stuck in a rental lease until May anyhow). 

I would not recommend quitting your day job until you reach a passive income that is at least what you were earning.With that said, you should take a look at your personal budget and then create a target number to reach.For example:I currently spend about $1,500/month in living expensesI make about $2,300/month in expendable income (after taxes & deductions)This allows me to live comfortably, I would not leave my job until I hit that number.Furthermore...$2,300 is 23 units bringing in $100/month per unit.

As for the same capital gains- yes and no when you figure in depreciation (on only the structure) and that you have not expended any of your money on the other 75%-80% of the asset.

With that said, after purchasing three rentals in the DC suburbs I have expended most of my cash.