The goal is to rehab this house then rent it to a qualified tenant until my fathers passing, at that time he has it in the will that the property is to be sold and then the profits are to be divided up between the family. 

But that also depends on your down payment- putting only around 20-25% down is hard to have a profitable STVR.Ultimately with STR v LTR, I'd be mainly curious about your intended use of the property. 

Is that process too complicated, yes, but there is nothing in this decision that will prevent a tax sale purchaser in MD from reselling at a profit after obtaining the property by foreclosing the right of redemption.

It would actually be a net PROFIT given the huge increase to tax revenues. 

Because your second year is likely (oops, I did it again) to show a net profit instead of net loss.

>>For purposes of taxes, consult with a CPA to confirm this would work for your situation, but you could have the LLC be treated as a "disregarded entity" and thus, even if you and your wife are members, any profits/losses would "disregard" the LLC and go directly on your personal returns. 

The current real estate environment that we've been in for the past several years hasn't presented any opportunities for deals like this.Because of the above bullet point, my real estate folio is kicking off a ton of profit each year which is fully taxable at ordinary income rates for me with federal plus state that means 42%From day one we've always self-managed everything, and built a great team of sub’s and handymen in every area, so that I’ve never had to do any labor.

Sometimes making a smaller profit and providing value is far better than holding out for a bigger payday on a bad deal, I like that.

83k profit Lessons learned?

One, I made a profit; other one, I kinda even out.