All in with new kitchen, hardwood floors throughout the first level, a new fireplace, backyard fence, and new carpeting upstairs are rehab costs were around 25k.

If you work 40 hours a week it is tough to claim 41 hours a week on real estate.And yes you are limited to $25,000 passive loss limitation, new tax laws only make this worse or better depending on if you can use all the depreciation, as you can write off more even faster.

@Lucas MilburnHere are some initial high level considerations:•Potential investors with retirement funds can invest those funds via self directed IRA (or if they are self employed, a self directed 401k).

Also I would like to separate the stairs going from top to bottom level.

This isn't the Commonwealth, your wallet will be emptied faster than you can say "Herring was a dope rapper!"

2) What is the risk level in purchasing a property that was sold with a non warranty, then trusted and sold through foreclosure.

Everyone has different levels of motivation at different times.

It usually helps me understand the market rather than guessing if one of two amounts is way off base due to one guy being pricier generally, or one guy missing something in his estimation, or different levels of quality, or sometimes what seems like random chance.  

This is also due to the home sitting in a low level lot, where the lots surrounding are at a much higher elevation, and will need to be leveled.

It depends on what it needs and what the marketplace expects as far as quality of property.Personally if the place is empty when I get it Like to rehab to a nice level for two reasons.