Which means that all you make will be taxed at a flat rate of 24%. 

Depending on if the property is bank owned or in pre foreclosure your point of contact will differ.

I was wondering if the tax benefits outweighed the upfront cost, but it doesn't appear to be so.

Do you open an account to escrow your tax costs or is there another way?

Personally, I think the taxes are high and the services you get for your taxes low there.I know people that invest in Detroit but you must know the area down to the street and have excellent property management.However, I just talked to my CPA today about a referral he was sending me who is a client of his that has 30 rental properties in Detroit and selling them all because the City doesn't really help, charges for everything, and they never have given a security deposit back to a tenant after they stayed because of their behavior or lack of payment.

Might me some tax advantages to this as well.

You could do this yourself and also bill the owner for this if you would like.I would say it really depends on if you have property or have managed rental property before.

@Richard BrownIt will be best to find a local CPA or an expert in AK tax law. 

Depending on your area you might find a nice selection on Turno that you can rotate through. 

For restaurants, rent should ideally be under 10% of gross sales, so I believe $5,500 a month is fair.The seller doesn't have a rent roll or strong financials, and his tax returns are 50% lower than his claims.