BUT if you do you will pay tax on the difference.You've been told or you've researched and think that you will not pay tax on your original basis and that is correct. 

Make sure that you have enough cash not only for the down payment, but also to cover the costs of closing, origination fees, property taxes, insurance and so on.

I like Tahoe Reno, NV market because of the appreciation growth, low taxes, landlord friendly, and constricted supply. 

By law I have to disclose that I'm a licensed sales agent in Virginia, but there's no commitment. 

Of course, you should have a local attorney look it over to make sure it's in compliance with the laws in your state/municipality. 

I stumbled on some information about short term rental tax benefits as it pertains to lowering W-2 Income. 

At the same time, non-necessary expenses such as entertainment and grooming services are 6% cheaper in Jackson, TN.With the cost of living in Jackson, TN being lower than both the state and national averages, along with housing prices significantly below the U.S average and low property taxes, it's no wonder that many see it as a great spot to invest in Real Estate.

Every lenders rate stack is different, so unfortunately only your lender can tell you how many points it'll take to buy down the rate.Break even point = (difference in cost) / (difference in payment)If you think you'll refinance or sell the property before the break even point, financially it typically doesn't make sense to buy down in points (however, consider tax benefits if it's your primary as you may be able to write off the up front points -- which is considered pre paid interest).In you scenario (assuming a 30 year loan), the difference in cost is $3150 and the difference in payment is $52.

**Tax and Term-Free Loans**Are you leveraging the advantage of tax-free loans against your policy’s cash value, with the added benefit of no mandatory repayment terms?

Especially now that you've posted your suspicions on a public forum, I'm not an attorney, but I've watched enough Law and Order that I could see there being the possibility of you being charged for "Aiding and Abetting" their crime by not reporting it or "Criminal Facilitation".