An added bonus is that you will also boost the portion of your payments going to interest, which increases after-tax cashflow. 

Most properties in my area have property taxes between 3K-4K.  

You can cash out refinance, allowing you access that equity tax deferred. 

A local credit union also mentioned something called a "savings secured loan" which can be used for anything (even going on vacation), but I don't know if there are tax benefits to that and I don't think I can do that under an LLC.  

I suggest Nevada because of the proximity to CA, landlord friendly, and low property taxes.

They try to desperately tie people leaving to the budget deficit but then have to admit it was more about reduced capital gains taxes and job losses in the tech sector.

Say a 550,000 loan with 25% down at 10% interest on 15 yr vs 30 yr. 15 yr monthly payment-- $4,40030 yr monthly payment -- $3,600Does not include property tax 

Someone still has to cover taxes, insurance, and upkeep during the foreclosure.

So essentially you will need money for ten percent of the purchase price, the first portion of the rehab, and holding costs to pay the hard money payments monthly and taxes/insurance. 

It will be tax free when it cooks off..