While you are considering options, be sure to consider the ability to leverage tax benefits available with investment property. 1.

Combined we are making about 250-300k annually pre-tax.

Everything weighs in.Step 2: Highlighting the Tax BenefitsTax breaks are a big inducement for many investors.

Thanks to the Cost Segregation Study, the property investors accelerated the depreciation that the first year depreciation was approximately $356,000.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Also, if you are given 3 weeks before bids are due, that would be a good time to check property-tax and other publicly available information, rather than trying to fade you bid after you've tied up the assets for a month. 

Looking forward to the passive income but also to the tax benefits

It might give you peace of mind as a newer / smaller investor, but in the end you have a problem you want to solve (taxes and being compliant), and if your tax guys owns a duplex will have no impact on his ability to address those issues. 

Similarly, there's a divide on whether taxes should be included or not in determining NOI.This lack of consensus has left me scratching my head.

The total monthly payment will be pretty close to this: P&I - $1,295, Taxes - $420, Insurance - $175, PMI - $220, for a grand total of around $2,100/m.

The associated costs, such as increased insurance and property tax, could pose a challenge under this model as well.