@Ephrem Bekere It's impossible to answer this question without knowing 1) your other income and deductions and 2) whether you reported your rental income (as well as other items) correctly, neither of which can be ascertained from a forum post. 

Otherwise, there are generally no strict caveats here as long as you get the proper advice on moving the funds an setting up the correct entity for ownership of the asset.

If you can buy a multi-family that is paying at least 50% or more of the expenses then you are ahead correct?

1920's and was not repaired correctly in the past, so want to do it right this time but still on a budget.Also need to replace double hung windows. 

They loan up to what you paid for the property within the first 12 months if memory serves me correctly.

But @Annette Hibbler, you are correct, most SFR realtors are not proactive and simply get a listing and wait for the calls to view the property.

@Mike Hartzog is exactly correct in that the purchase price of the note by the hedge fund is not public knowledge.

It is located in Myers Park, adjacent to the South Park area.All my attempts to get anything larger on the MLS have been met with bidding wars and my highest and best offer was not good enough.I’d be happy to meet with you when you’re down here visiting.

How can I break through this ongoing approach of trying to get me to out-bid myself?

The whole Buffalo market has been steady ( slow ) for years and years so we never really dealt with booms or busts, but with the crazy growth over the past several years, I can see things being over priced and possibly correcting, but when...