I have always prided myself as one who owes nobody, but if I am going to succeed in real estate, I have to get comfortable with leverage.

What are the tax ramifications of deciding not to rent a rental property and just leave it empty?

@Nicole TuffarelliI am aware of a few groups that can usually utilize funds from an IRA to help purchase new homes at reduced leverage (usually capped at 70% LTV).It might be more beneficial from a tax-standpoint as well to do it that way instead of drawing it all out.

If you took a $100,000 loan at a 8% interest rate, you would owe a total of $8,000 in interest.

Starting next month when my renter moves in i will have only utilities and taxes as overhead at my new home in michigan. 

How bad are the capital gains taxes?

Also property taxes were incredibly cheap at $500 / year (expected to go up in about 3 yrs). 

I understand the tax foreclosure and bank foreclosure before the REO but the HOA had me confused.

If you aren't a Real Estate Professional, I am not sure adding more to your portfolio, with the main intention being tax reduction, is the best option.

I have been driving for dollars and mining the county auditor's site for homeowners who are delinquent on their taxes.