If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

It is how it is recognized, taxed and falls heavy on the VOE. 

The book on tax strategies for real estate investor by Amanda Han and Matthew Macfarland.I read these two books when I first started investing and found the information very helpful.

A 1031 exchange would use all of the tax in the purchase of your next property.

The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

Now consider this: all the groups people are spending fortunes to target—foreclosures, absentee owners, probate leads, tax liens—what do they have in common?

A lot of Chicago workers are moving to this area to escape IL taxes and politics.

If it wasn’t the insurance it would have been the property taxes.

These special taxes, as they are called, are collected the same way as general taxes (December & May) but are listed out separately.