Try looking at it a slightly different way with some quick math:$900,000 sales price$22,500 cost of purchase (appraisal, points, lender fees, title fees, etc - 2.5%)$90,000 cost of sale (10% commissions, closing costs, buyer credits)$64,000 carrying costs (6 months at 10%)$25,000 additional carrying costs (6 months taxes, utilities, HOA, misc)$100,000 rehab cost (the number used above)$68,500 profit = $530,000 max allowable offer.Some numbers may be a bit high, others may be a bit low. 

If so, you could consider that tax savings.

It sounds like you need to consult with Eviction attorney, CPA/ Tax professional, Great Realtor and Lender for this.

They ended up losing a property worth around 1.5 million for back taxes of 25k.

Rent: $4,250/ moMonthly expenses (including management): -$600Monthly Mortgage/ taxes/ insurance etc: -$2,550thanks

Market research, local expertise, networking, property management, financial planning, potential legal and tax ramifications, risk management, and long-term vision are important factors to take into account.

Can I deduct expenses (utilities, mortgage interest, taxes, etc.) on a Schedule E for my 2023 taxes?

A reference for me to keep track and make the year end tax paperwork easier. 

What are the tax ramifications of deciding not to rent a rental property and just leave it empty?

@Nicole TuffarelliI am aware of a few groups that can usually utilize funds from an IRA to help purchase new homes at reduced leverage (usually capped at 70% LTV).It might be more beneficial from a tax-standpoint as well to do it that way instead of drawing it all out.