However, the tax basis will be a low $770,000.

Those tax savings could out way the benefits of renting.

Short term capital gains is your ordinary income tax rate and long-term capital gains where you hold the property a year or longer is considered long-term capital gains is in as taxed a lower rate.  

(250 hours is quite a bit if you think about it.)The other thing you might look to to answer this question is how you are treating the income on your federal tax returns.

At least I will build equity and have some tax advantages, or even pay a lower price as a result of the high interest rates.

Just trying to see best way to play the tax game.

@William Willis  The tax sale is void.

Can I deduct the closing cost in my rental property taxes for 2023.

Anybody have some sample wording for a seller carry back mortgage note that is held inside of a tax deferred exchange? 

I would talk to a lender, they look at your Schedule E section of your tax returns and add back depreciation, so basically, as long as that number is greater than the mortgage, your property will be a net zero on your debt to income ratio or it will be at a positive best case and small negative worst case, so you only have to really qualify for the next property.