All properties taxable values are capped at a 15% increase between reassessments (every 5 years) so if you hold the property for a while you will very likely end up being below market value.Buying a property though will trigger a reassesment to market value.

When you analyze deal using all cash vs some level of financing you should review your cash flow before taxes taxable net income would be in the different scenarios. 

Easy to understand and well written.You cannot deduct your down payment or inspection costs from your taxable income, regardless of the dates.

If your marginal bracket is still 15% after all your capital gain is included in your taxable income, then your depreciation recapture rate will also be 15%.Just how I see it.

That means you can take 750,000/27.5*.3 or ~$8200 off of your taxable income every year for the next 27.5 years. - You can re-leverage once you have built equity to keep your capital working hard for you, which you can't do with stocks. - Stability.

Your actual taxable income and deductible business expenses should be the same. 

Increase in Rents because FMV of property is more, eventually much more.Also, #3 and #4 will help offset your taxable rental income. 

However, that means more taxable income come tax season which is a whole other discussion/consideration.Situation #2: I have a primary SFR that I purchased with 20% down and have been making an additional principal payment every month for the last year.

These investments benefit not only the taxpayers making the like-kind exchanges, but also generate jobs and taxable revenue for unrelated businesses upstream and downstream from the exchange transaction, such as real estate brokers, title and property insurers, escrow / settlement agents, lenders, appraisers, surveyors, attorneys, inspectors, contractors, building supply vendors and more. 

I know there are benefits to having your AGI low enough so that you can apply 25% or so in passive losses to your taxable income...not sure what the thresholds are for that though.