Quote from @Mani Sundaresan: If I’m financing a rehab project with a hard money loan, do I still need to issue 1099-NEC forms to my contractors—given that the funds come from a loan, which isn’t taxable income?

They may be offered at a cheaper price point relative to the coasts but that doesn't mean that those neighborhoods haven't seen population growth and appreciation.

Duplex can always add additional units via the ADU laws. 8) Related to number 1, purchasing a property with an existing ADU is cheaper than buying a property and adding an ADU.

So you could see about going to auctions and winning a "cheaper" bid on a property there, if you decide that's an option.

I have dabbled in real estate, but never heard of brrrr before now, and transparently never did much research outside of knowing that property ownership was a way to reduce my taxable income. 

2) wouldn't the interest be taxable to seller?

Did you have taxable income that could’ve been reduced utilizing tax strategies?

Tax benefits should be considered but not be the sole factor.The 'main benefit' from a tax perspective should be to generate a high return from your real estate investments and not to pay taxes on the return that you get.If you are able to reduce your taxable income, that should be icing on the cake.

There is the inconvenience factor but it might be cheaper for you and your friends as well.

I wanted to start with a cheaper property I could reasonably afford and also learn from.