If the permanent financing will allow you to recover most of your initial investment and the fair market rent covers the principal, interest taxes, and insurance with cash left over, you have a BRRRR.

- The percentage difference is the percentage the taxes will go up after you buy it.What do you mean by the property has HVAC AND boilers? 

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

The absolute best way to avoid taxes is not earn income.  

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

I would also share pros and cons of paying taxes on the windfall versus owner carry.

This is a screenshot from a private Facebook group for tax professionals.

Home went to tax sale county kept excess proceeds.

I don't know the answers on taxes, but New Jersey is the densest state in America.

It is tax free in the sense that you will not owe taxes today on the cash-out.