I calculated the accumulated depreciation (recapture), closing costs, capital improvements, original cash outlay, etc to arrive at current tax basis and to the rough net gain of $50,000.For the sake of understanding the specific question regarding the cash boot, let's assume my net gain estimate of $50,000 is correct.I have engaged a QI for this exchange and they won't provide any guidance outside of "contact a CPA" which is everyone's favorite answer.  

One of my favorites!

I narrowed the choice to my 5 favorite.

This is from one of my favorite commentatorshttps://alhambrapartners.com/2020/07/28/strike-1-gold-strike-2-dollar-strike-3-inflation-expectations/

It’s a gamble.

What are some of your favorite daily subscriptions?

It is a gamble and some people get lucky.  

Your income, while not irrelevant, isn't the primary factor.If you're cash-rich, I would start looking at 5- and 6-unit buildings in gentrifying neighborhoods like Inglewood and Hawthorne (my personal favorites).

Also, many of these investors are funds and buy these in bulk, gambling on the chance (say 1 in 5, as example but not sure what the exact odds are) that it will go to a tax deed sale and they eventually take ownership of the property. 

Interesting read, favorite article quote:"(meaning) an Austin tech employee would, on average, need an $83,000 raise to maintain the same standard of living in San Francisco"