-Julio Hi Julio, Thank you for responding.What is Engineered Tax Service?

You did not account for property taxes. 2.

Assuming cost segging a rental is the only way:condo or townhome/SFH with NON depreciable landnewer property/fixtures vs older propertyNOT a pro newbie landlord vs REPself manage or prop. mgmt. co.GOAL is biggest tax bene.NOT best cash flowing deal

Do I get tax breaks as well getting a cash refinance loan? 

I'm a former CA resident and moved to Nevada (Lake Tahoe / Reno) because the housing is less expensive, no income tax, landlord friendly, and one of the lowest property taxes in the country. 

The money you make is tax-free if it's your primary 2 out of the last 5 years (if you rent it for a while, I believe there are some taxes, but it's prorated on time based on what I remember - not tax advice).

You give the vendor the completed 1099 and you report it also to the IRS in your tax filing.

This approach would not yield significant immediate cash flow but could lead to equity growth, tax deductions, and property appreciation over time.

If you qualify, it is a nice option.In the IRA format, you need to start with an IRA held by a non-traditional custodian, then have the IRA make a single investment into either an LLC or Trust to obtain checkbook control over the IRA.There are a few firms that specialize in establishing a checkbook IRA trust.If you are investing in non-liability risk assets like funds and syndications, there is a clear advantage to the trust as it is not considered a business and therefore not under the purview of the CA Franchise Tax Board.If you will be investing in rental property, the limited liability protections offered by a LLC may outweigh the cost and headache of California filings. 

He is also wondering if the taxes would be less if he just sells the property outright.