Property taxes are also insane.

I was just reading Mark's book "The Tax & Legal Playbook" this morning and it specifically had a "critical warning" (page 31&32 in Chapter 3).

This is an example of private lending which is different than the IRA owning real estate and does not trigger UDFI/UBIT tax.

I will give you my numbers since we are 3 years into Velocity Banking.Home was purchased at $410k.Interest rate: 3.125%30 year termMortgage payment is around $1950 (includes insurance and property tax)HELOC: 8.25% Variable rate - current rateCredit Limit: $97kLet's say I made $10k a month and our expenses were $6k each month including the mortgage.

I also want to learn about purchasing properties with tax liens / bankruptcies / foreclosures.1.

Not only were tax shelters stripped of their tax deferral capabilities, but they were stripped of it RETROACTIVE, allowing the IRS to recalculate tax shelter investors income going back 7 years.  

Additionally, most servicers will provide the tax documents needed at end of year (1099-INT, 1098-INT) and can also issue notices of NSF, late payments and support delinquency /default.

Is it tax smart? 

Property taxes are 2% instead of 1% for landlords as a general rule (some districts may  be slightly higher). 

If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion?