Where that $45K tax number comes from is a combination of three things, the depreciation on the property, the deductions for property taxes, the deduction for mortgage interest, and $16K in lifetime expenses for the property. 

. $120k out of pocket money down to obtain the funds.Huuuh???

@James Tobin Welcome to Bigger Pockets! 

I actually got caught up in the creative finance bubble of trying to lock up properties way over their value just because it had creative terms not realizing that if you were to buy a property at 120% of its value you will never be able to refi or sell without paying out of pocket.

It’s a strategy that allows investors to acquire rental properties with little to no money out of pocket while building equity along the way.If you're considering using the BRRRR method to grow your real estate portfolio, here's everything you need to know about how it works, its benefits, and potential risks.What is the BRRRR Strategy?

Buyer rents it to a dead beat, pockets the cash, doesn't pay the mortgage and boom the foreclosure goes on your name.

Been listening to bigger pockets for about a month now (literally everyday, at every moment I have spare time LoL) and am learning a lot.

And, FMV on 1/6/25 is not FMV today because now you don't have a lot in an established neighborhood, you have a lot in a disaster area which comes with the challenges I listed above.We built about three dozen "fire lot" homes after our fire--all lots acquired off MLS or from owners that came to us (we didn't market for lots), and not at a price that anyone would call a "discount". 

What’s a good price to paint a three bedroom, 1300 sq ft house?  

Maybe we can help a lot of people on this Bigger Pockets platform.So if you are an experienced investor, flipper, or buy and hold person?