One caution when using crypto to acquire property is being aware the tax ramifications are identical to if you converted to cash first.

I want to take advantage of growth if possible, but also want to minimize taxes and fees (penalties).

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

He’s also interested in staying in the home if possible and deduct the rent from the balance he owes.

The 1031 exchange rule to defer your tax is two part 1) reinvest all your proceeds and 2) purchase a property (or properties / DSTs/TICs) with an equal or greater market value.  

Keep in mind that you get to depreciate these appliances on your taxes.

Knows real estate tax write-offs and how I can best apply them!

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.

I'm about to stabilize a quad that is now cash flowing (after 8 months) because I appealed taxes (and won), got better insurance, and then renovated 3 of 4 units and brought rents up $300-$400.

A couple developers we work with skip LIHTC and the tax credits and go the route of impact funds to help alongside other debt and sometimes equity.