Its going to be managed by a property manager and thus a passive investment which is allowed per h1b rules.However, I am being needed to procure state and county hotel tax certificates which almost seems like I am launching a hotel business in the records of state.I am starting to wonder if this can cause issues down the lane when renewing my visa or applying for green card.If anyone else has a similar experience or own STRs on h1b, urgently want to discuss this with you.

We get calls all the time from people that claim to be investors wanting to buy one of our properties (including some we sold more than a year ago - shows how accurate some of the pay lists actually are) and when pressed, it is clear they are fishing for deals to wholesale without having buyers lined up. 

The loan program qualifies the property by using Rental Income to cover the Total Mortgage Payment which includes Taxes, Insurance, and HOA.Regards,Michael Taylor

I think will be extremely difficult for then to get money out of you but may be easy to get a free stay and claim any eviction attempts are retaliatory. 

Point your missing with tax implication is tax's work in a % basis.

From Wikipedia, Alabama has the second lowest property taxes behind Hawaii.2.

Additionally, because it is a new construction, it is taxed as raw land for the rest of 2024, which will only be about $30-$40 of taxes for the remaining seven months of the year. 

They claimed the appraisal was independent but I have my doubts.

I just received the appraisal for 2024 and the assessed value will increase $28K, increasing my taxes $600 if the tax rate doesn't increase.

This way, the seller gets 87k in hand, won't pay nearly as much taxes up front on a huge cash sale, will still be generating about the same amount of income as he is today, consistently for 20 years without the headache of managing it or insuring it.