I am really trying to figure out how to put in a bid on the Baltimore City tax sale (coming up in May).

When investing in real estate, don't overlook local and state taxes.

In general, expenses related to the purchase or improvement of a rental property can be deductible, but the treatment of these expenses may vary depending on the nature of the expense and applicable tax laws. 

I just sold a spec, I built a house for my self last year and finished a spec this year, I bough the lots at tax sale, and I was the GC, HVAC, Tile, Flooring, Cabinet, Painter, and Misc. guy, made a nice profit, but the crappy part is taxes, its like a flip, short term gains. good luck!

It's a good idea to talk to legal and financial experts about taxes, insurance, liability, rental agreements, and managing your finances.

Look at your monthly payment (PITI = Principal,Interest, Taxes, Insurance) + HOA + (other maintenance fees if any) and if this amount is less than what you charge for rent (whether its Long, Mid, or Short Term rentals) and you are happy with the positive cash flow, then yes.Or maybe you're breaking even with the condo but you have  knowledge that the condo will explode in value due to some business/attraction/law/policy that will prop-up the sales price in the near future, then yes.Really, it boils down to what your goals are for this first investment.

With the exception of places like South Florida which can be quite saturated, Florida is great for high return potentials because of its consistent population growth, beneficial tax laws, and strong markets.

Specially, as it relates to taxes.  

However, the lodging tax is NOT included in this average daily rate. 

I'm of course bias, but I chose Reno because of it's proximity to CA, no state income tax, stable job growth, population growth, land constraints (constricted supply), proximity to Lake Tahoe, etc.