However, I asked Chat GPT this question and it told me 'No'Obligatory apology for the long post but I felt the details were particularly important to understanding the context and nature of my confusion.Multiple counties reference section 3712 of the CA Revenue and Taxation Code to state that "The deed conveys title to the purchaser free from allencumbrances of any kind existing before the sale, except..." and then goes on to list multiple exceptions that appear to all be related to governmental and/or taxing authorities but I don't see anything that seems to imply anything about mortgages being included as an exception.Additionally, Ted Thomas' page (https://tedthomas.com/is-calif...) states "IS CALIFORNIA A TAX DEED STATE?

How much income does a wholesale business need to generate for an LLC with S-corp taxation to make sense? 

@Edward Synicky Your information is incorrect.A Solo 401(k) is not subject to the UDFI taxation that applies in an IRA to returns generated from leverage such as  a mortgage.If an IRA or a Solo 401(k) engages in a trade or business on a regular repeated basis (such as flipping more than one house), then the gains from that business activity are taxed as UBTI (Unrelated Business Taxable Income).  

The RATE of taxation is another.

You also avoid having to maintain all the separate trusts discussed previously.Here's the 50,000 foot view...You have an LLC, with all the inherent asset protection and pass through taxation benefits. 

We intend to buy more SFR and duplexes as well.What about taxes, what do you recommend we do from taxation standpoint?

Here I usually ask for proof of income in the form of pay stubs and in summary form from the taxation authorities.

Please go to https://americansabroad.org/issues/taxation/us-tax...to see explanations on filing a US tax return even if you do not have any US income.  

Your question is a taxation question and the short answer is that pretty much every cent you spend paying the PM to manage your property is an expense that will be written off on your taxes.

I thought about taxation issues, and it happens that the lease starts July 1st, so the first 6 months rent (plus 1 month deposit and final month rent) would be received in this tax year (for July-December), minimizing the over payment of rent in 2016, which will perhaps cause 1 month added taxable income in 2016.