That sounds like a fantastic plan!

Sounds like you are doing a lease to buy deal. if you can lease it out for $3K more than your PITI, I  think that would be a great deal.

This doesn't sound like it's in one of the high-performing resort-style communities, so I would be a little cautious.

This sounds like a great opportunity to do some tax planning with a CPA to determine what type of entity structuring meets your goals. 

It sounds like it is the same as your total business income, but it is not.

Question everything that sounds too good to be true.

Hey BiggerPockets Community,I'm a beginner in real estate investing and looking for some guidance on the most effective way to invest and generate cash flow, particularly in the New Jersey area where I reside.

If its going to sale, there would be no "contract" so, it sounds like you are not buying a foreclosure at foreclosure sale but instead, maybe an REO?

NCREIA sounds like a good idea.

In most of the 35 or so deals i've been in, i've had little to no taxable distributions until year 7-8 on our typical 10-year hold period, so a 10% cash on cash return is an effective 13.33% for example when you compare to other taxable returns if at 25% bracket,        The syndication next can roll the sale proceeds into another larger investment, like-kind, 1031 exchange and not have to pay any long-term capital gains taxes, about 20-23.8% nor any depreciation recapture tax about 25%.