Taxes 10k HOA is 9k The current owner never did short-term rentals.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

Low property taxes (1.1%) and not a lot natural disasters as well.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

When that portion was complete, I could then receive draw money which allowed me to pay my utilities, taxes, and mortgages.

I know I'm getting the tax benefits of depreciation, the minimal positive cashflow, and the appreciation on the property, but It's pretty much a long term play of slowly raising rents annually to increase cashflow, which will eventually get basically reset when my loan goes P+I in 10 years.

Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

Let's assume your expenses (mortgage, taxes, insurance, maintenance, vacancy, etc.) comes to a clean $600 and the property rents for $1,000.

Assuming this is an 8 cap neighborhood you'd have a ~$420-450k value within a year (unless property taxes are crazy high) when leases would renew since it'd be valued as a commercial building with the office space.