I know, I'll actually contact a qualified CPA and a tax attorney to see how it applies to my particular situation, but I'm also just curious about this in general.Disclaimer: I'm not a lawyer, nor a CPA.My understanding is like this:Yes, the taxable loss can offset earned income, if you can be considered "active" in your investment.

Can I consult with a Realtor and pay them a "consultation fee" during this process or would it be better to just let my real estate lawyer (whom I have not chosen yet) be the person to guide me?

The plan is to start small with a four family in good condition which will earn a little money and give me some experience.

In perfect condition.

The loan amount is going to cover the purchase and the expenses to put the house in selling condition.

The home is currently on the market with another realtor at to high a price for the condition.

If the $1600 is covered with adequate return on the down stroke and the condo is ready to go (move-in condition) and the neighborhood bodes well for appreciation what is the concern?

I usually chase down HUDs since there are a lot of nice properties (less than 5 years old in good condition) right now in central Texas.You can also find movitated sellers on resales to find good deals that can be equal to or better then the HUD deals.I have attended a few first Tuesday courthouse foreclosure auctions just to watch.

A lot of landlords have them due to documentation of apartments for clean/unclean conditions.

Also, you would be surprised at how many professionals (doctors, lawyers, etc.) that are looking for a great real estate investment to make money on.