@Chris Seveney The types of leads I'm targeting are absentee owners, vacant properties, pre-foreclosures, tax delinquencies, and probates. 

Tax Preparation, Tax Advisory, Accounting.

From tax stand point I would think you can separate from primary and be okay with IRS being that IRS will not be local code enforcement.  

For example, what is the monthly revenue for the property and what are the "All In" expenses, including mortgage, taxes, insurance, utilities, repairs, etc...

I have also been doing quite a bit of research on Loan's, tax consequences etc., and am working towards being a expert in this niche.  

No management costs as it would be self managed, and estimated property taxes by the average of the past few years.

I pay $875 (including principal, interest, taxes, and insurance) and rent it out for $1,625.

If you need an LLC for tax reasons later, you can move title into an LLC later for a couple hundred bucks.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.

My tax professional is stating that I would need an appraisal to show the lot/structure are valued at $400k if I try to claim $200k as a donation.