So to me that trade off is worth it and I'll look at other deals from a hard investment stance.

I know I need a CPA... its on my list.Schedule E has a list of expenses...

Third, yes, you are correct, you must trade equal or up in value based upon your net sale price (not profit, taxable gain or equity). 

Secondly, the IRS will examine the intent of the person - was the person intending to engage in an active trade or business.

I am interested- just sent you an e-mail!

My goal is to trade or buy up to multi units and commercial.

HI @Dawn Brenengen I am looking for several contractor recommendations in the Raleigh area for these specific trades: Plumbing, Electrical, Roofing and Drywall.

I'd try to contact some trade services that do large construction projects, but are more of a ma and pa based operation.

After the debt is gone, the incom,e keeps coming.

hi chaim. i have not bought any houses at a tax sale. i have however, bought a few after the tax sale. here in erie county new york, if you buy from a tax sale, it can be a great deal. however, whatever was left on the past due taxes, you now owe. hence, you just bought yourself a liability. i don;t know about anyone else here, but i can manage to create my own bills myself without buying anyone else's tax liability. so, watch out for that issue. it may just be a new york thing, but maybe not. one of our local municipalities here has their own tax sale auctions aside from the county. that one, if you buy from them, you get a clean slate, no past due taxes left. however, they like to start the bidding out at what was owed to them, so, there would be no " leftover" anyway. by the way, they sell very few of them. lol. i usually go back to them after the sale and offer to buy some of the " left over" properties, usually for pennies on the dollar and i get them. you think they would figure out to start the bidding low if they are gonna sell them cheap later on anyway. but, regardless, even after i buy them dirt cheap, i still get them with no left over taxes owed. also, you need to know if your state is a " redemption" state. i. e., can the owner come back later and redeem their house by paying the taxes?