A reference for me to keep track and make the year end tax paperwork easier. 

@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.

I reached out to a realtor I know in Prescott (not where I'm investing though) and they said doing this without permits wouldn't be an issue for resale or appraisal purposes based on prior experiences.

How bad are the capital gains taxes?

Excluding taxes and insurance, your monthly payment is roughly $1,700 dollars a month. 24 months ago that same loan of 250k, with a 715 credit score on a 30-year fixed was hovering around 4% meaning you’d pay just under $1300 per month.

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

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

This would fit very well into my long term strategy of growing my LTR portfolio while still providing big tax benefits against my W2 income. 

I want to be clear that we will NEVER share details from the prior transaction with you or any lender. 

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