Otherwise any cash you keep would be taxable.  

To get this, I’m paying them about 10% over asking price in total purchase consideration, but the terms and monthly payments are so favorable that it really doesn’t make much of a difference.Although I’ve read extensively about these deals, this would be my first and my big question is around the taxable basis of the property.

. $500k becomes $350k and throws off taxable NOI, etc.) 

In many cases, rental losses can be deducted from your taxable income, but there are limitations and eligibility criteria that may apply.

All that extracted cash isn't a taxable gain.

A read some articles that some rents may still be taxable which is fine.

Rent is $1,000 per unit, per month, properties appreciate 5% annually. 10 years go by: Plan Ramsey, you got $120k in gross rents but as it's all taxable you were left with just $80k of that and $162,889.00 in equity.   

It tells you how much interest you must include in your taxable income.

These deductions can significantly reduce your taxable income and increase your net worth.

A read some articles that some rents may still be taxable which is fine.