You have two sets of possibilities, one this forum can help you with, one it can't.Financing, what are the major terms, what kind of lender are you working with?

The risk of not knowing all the existing encumbrances (all kinds of liens or other interests ) - on the real property is really huge.

However you'd be out the LLC filing fees in the latter situation, so the LLC would appear to be disadvantageous if viewed solely through the lens of income tax compliance.If you're looking to avoid tax I'd suggest you read up on a "like-kind exchange" aka a "1031 exchange". 

Also for the cap rate question you asked, I wont tell you what kind of investments to make, but I personally would not take low/no cash flow property on the hopes it will appreciate.

Hola amigos, I am looking for lender recommendations in LA, me and my wife are very interested in real estate and want to take the first step towards owning our first property, either to move in or as rental property, still undecided.I'd like to know why you recommend that person and in what kind of project they helped you with.Much appreciated in advance!

I think you might be asking what kind of deduction you can take against your rental income? 

This is something one of my mentors kind of drilled into my head from his own buys here in Denver.

But generally speaking yes you can put that kind of money into the property if you get it at the right price.

What kind of professional knows about tax abatement incentives, systems development credits, etc?

20% down on that kind of loan with a min. of 660 credit score.