I learned how to prepare all my tax returns, and realized it is better done by a professional who can keep up with the changes in tax law.

Although with tax write-offs, depreciation, and equity growth, this property is still a positive of $15-$20K annually to our net worth.

In terms of tax implications how does that even work?

You can contest taxes.

Remember you're also paying 10% interest, taxes, insurance on that time. 

The two most primary tools are by filing a Form 3115 or by amending your tax return.

Other cash such as down payment or money to fund your escrow / impound accounts (accounts that most lenders require for your property tax and homeowners insurance shouldn't be included in lender fees).

If you are going to tell them its your home of record, make sure it looks like it. i.g. your mail is delivered there, your tax filing with the county is your home of record, or homestead exemption, etc...

I wanted somewhere close to Nor Cal but much more friendly tenant/landlord laws, 4th lowest property taxes in the Nation, rent growth, job growth, population growth, strong appreciation, limited land, close to Lake Tahoe, etc. 

on top of this, what we found is finding high density allowances of at least 150 dwelling units per acre and taking advantage of up zone incentives through hotel development, affordable housing development, etc. we try to develop the lowest cost per door possible and another way to do that is through micro housing development. raw land we also look for underpriced land that we can raise through entitlements the value. those are just a few of the tools we use in addition to parking reductions and other incentives for tax abatements.