@Jim T.Logan is correct in that you only report the state income tax refund if you received a benefit from deducting state and local taxes.Instances where you don't benefit 100% from deducting state and local taxesexample 1State and local taxes on Schedule A is $11,000(only itemized deduction)Standard deduction is $10,600You only received a benefit of deducting $400 of state and local taxes.

I am considering going the 5/1 ARM route and put the savings from taxes and the lower payment towards the principle of the home.

The sellers attorney is correct in that you are asking for a unicorn.

The seller never bothered to get a CAL (Commercial Activity License) or rental license, but has applied for one to verify the property is correctly zoned. 

The one tenant mentioned there are gaps for air flow, which they tried to correct on their own (prior to us owning). 

You definitely should be spending much energy on finding the correct tenants.

The reason why I want to go the wholesaling route is primarily because I have limited funds to go out and purchase a property for myself.

Realtors, Contractors, or anyone who has any advice on investor friendly title companies, the correct and legal contracts to use.

(Hypothetical Situation)149k asking price130k purchase price50k rehabARV value - need to confirm with my agent, but let's say 220kI'm just beginning discussions with banks so don't have a ton of knowledge, but figured I'd reach out to see if anyone has any advice/thoughts.1. 203k loan typically requires 3.5% down, PMI and for you to owner occupy for 12 months - is that correct?

@Tamara Smith@Ryan Colby is correct, we evaluate all our STR as if we had to put a long term renter in there to make sure we would at least break even.