Over the past 7 years my insurance has increased 65% and property taxes another 20%.

In 1998 I discovered Tax Lien Certificates and in 2000 was introduced to Tax Deed foreclosures. 

I don’t know if it’s legal or if it’s tax evasion.

Property management is managing it and giving check on the name of property owner who is Child LLCprior cpa was filing taxes under Parent LLc as the child LLc is a pass through entity.

Ok… so I understand tax lien investing as a race to the bottom.

I ask because sometimes the tax liability isn't always that bad.I generally consider it better to sell/1031 to scale up instead of cashout refi. 

Tax free.

The pro-forma (then) Jax Investments provided was conservative in that the taxes were overestimated and the rents ended up being more than projected.

The reason is that you are paying a 10% withdrawal penalty AND income tax on the money.

You get that back if you sell, but if you keep it as a rental it takes 153 months or 5 years to break even on your down payment alone.https://www.redfin.com/IN/Indianapolis/1515-E-Kessler-Blvd-Dr-46220/home/66981054ARV / Sell Price$235,000We Calculate All CostsPurchase Price$152,750 65%Closing Costs$2,000Rehab$30,0006 Months Carrying Costs$9,114Real Estate Selling Costs$14,1006%Other$0Other$0Total Rehab Costs$207,964Now We Calculate ProfitARV / Sell Price$235,000Total Rehab Costs$207,964Gross Profit$27,036IRS Tax$4,05515%Net Profit$22,981Per month profit$3,8306Loan Down Payment$30,55020%Loan Amount$122,200 80%Loan Cost per rmonthPrincipal & Interest$8137%Prop Taxes$321Insurance$168HOA Fees$0Monthly Payment Costs$1,302Monthly Payment 1$1,302Monthly Payment 2$1,302Monthly Payment 3$1,302Monthly Payment 4$1,302Monthly Payment 5$1,302Monthly Payment 6$1,302Utilities for 6 months$1,302Total for 6 Months$9,114