Projected CF after the first year is $650 after PITI, Vacay, Repair, capex, Etc.Purchased under market rent as tenants were paying $880 m/o.

The property is in an area with low sales volume.

Projected CF after the first year is $650 after PITI, Vacay, Repair, capex, Etc.Purchased under market rent as tenants were paying $880 m/o.

In a few years rates will be back to normal and you can refinance to drop the rate after you purchase a few more REI's

If you’re working with a tax professional ask them to do a tax projection for you with one scenario assuming you sell all 5 today and the other assuming you only sold 2 today.With the tax projection you’ll now have a good estimate of what your tax situation will look like and can make decision based on that.Maybe you can consider selling your portfolio and doing an installment sale, this won’t help on the depreciation recapture but it would help spread the gain over multiple years.Each strategy has pros and cons, if you want to rip the bandaid off an be done cold turkey (or warm turkey if you’re into that) there most likely will be a large tax hit but less headache holding them longer.

Furthermore the local experts can confirm the following: (1) the use is allowed, (2) the use requirements can be protected by permitting and licensing and (3) the permissions are transferable through a sale.

Just keep after the owner...everyone has their price, right?

I read it somewhere,  you don't have the title after winning the bid. 

In my experience, after the sale on the courthouse steps, the Clerk or the Sheriff gives a Certificate of Title or Sherriff's deed, without warranties, to the highest bidder. 

However, it adds complexity with more paperwork and potential self-employment taxes on all the income.Doing it as an individual is simpler, with everything going on your personal tax return, and you might benefit from the home sale exclusion if you end up living in the property for a few years.