State - it depends, you can have real estate transfer tax issues / re assessment issues. 

But if  you break it all down yourself, its a negative CoC return and you are losing $......yes there are tax benefits, loan paydown, etc. but that still doesn't make up for the fact you are profiting 0, especially if you are investing in a cash flow marketIn the end, if you are just looking for places to park $$$ for the long term it may work out, but if you are looking to make an annual return on the money you put in there may be better ways of doing it.Just my 2cents on this, I'm not a big time investor like some of these guys and they are a successful for a reason.

The added benefit is the equity you have now created in your personal residence that can avoid capital gains taxes if you live there for at least two years. 

And another $200 in property tax.

Hey bigger pockets, I was just wondering what some older more experienced real estate investors thought about the idea of buying tax deeds.

Let's talk about Capital Gains Tax.

However, in my market a nice unit can easily collect $120,000+ in rent (not taxes, fees, or other pass through costs) and when the locals demand 35% commission my 20% is a steal and isn’t a whole lot more work for the 25k+ a year I’m making per property.

Someone who works out of state with fire and government jobs but maintains permanent residency in home state with intent to return on taxes, license, etc.

Perhaps tax wise or ?? 

Then, you sell and keep the profits tax-free because of the capital gains exclusion.