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

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.

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

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

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.  

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..

Wife to an Army veteran/marine biologist/mechanical engineer/healthcare administration executive.