I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

It occurred to me today that I've never asked about umbrella insurance claims.I’m particularly interested in real-world examples where this type of policy came through during:Property damage (fires, storms, floods, etc.)Liability claims involving tenants or third partiesMajor unforeseen eventsIf you’ve ever had to file a claim and your umbrella policy saved your bacon, I’d love to hear:What happened?

We plan to stay in this house for more than 5 years unless another great opportunity arises, but maybe it is best to allocate a bigger portion of savings to our real estate investment savings account than our home improvement savings account for the first few years.

To defer all tax you must purchase in total at least as much as your net sale.

I 100% endorse adding in the escrows for taxes and insurance to set the buyer/borrower up for success. 

@Chris Seveney, do you pay self-employment taxes on your interest income from money you have in savings that is also taxed as ordinary income?

After closing, when the property taxes were due I never received any bill.

Three Months ago, low to mid 6's were available.Rates are going to continually fluctuate but if you have a way to earn 10+% on your capital, the TIME you are not using it is going to cost you way more than the extra .5% per year will.You are walking over dollars to save pennies if you are waiting for the perfect rate, half of the people who held out on getting mid 6's were waiting for high 5's.

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

When you say "we," are you speaking about your business or your personal tax returns, or does your business flow into your personal returns because you file as a sole proprietor?