Hi,I heard there are lots of Tax advantages of Real Estate. 

We are looking at building a new team as we need to get our business back in order so we can better protect our assets here in the States and also lower our taxes as we have not focused on this aspect having lives and worked primarily overseas.

There is no state income tax in Texas and property costs are much lower than NY.

In this case, I would talk to your accountant now, so that you are clear on the plan,  and not scrambling at tax time.  

There is also a cost benefit to writing off some of the expenses you should discuss with your accountant or tax attorney.

However, the math is confusing me and the tax deductions.

My area of expertise is purchasing property from Tax Sale auctions.  

Closing costs: $3515 (3.5% down on FHA)Conventional 30 year @ 3.25%Income: Current rent: Lower 2BD $800 (rented MTM but I think I might be able to get $900)                     Upper 1BD $500 (I would occupy upper)Market Gross rents: $700-1200 2BDMonthly liabilities: Mortgage (P&I): $399Utilities: $150 Vacancy: $65 (5%) CapEx: $65 (5%) Insurance: $90 Repairs: $65 (5%) Property Management: Self managedProperty taxes: $408Total expenses: $1241Monthly cash flow~ $58.64/mo (Unless I can get $900 for rent then it would be ~$145/mo)My current rent is ~$500/mo with utilities.

I am wrapping up my flip and was wondering what type of payment documentation I will need for both legal and tax protection.The project involved a GC, electrician, plumber, and granite vendor.Do I need to get waivers from all these guys?

That's the whole point of the first position note, really only taxes and a couple other odd ball things can wipe it out.