We kept the first one for two years before selling to exclude all the gains from capital gains tax.

Also I pull some lists myself too like tax delinquent lists from the counties and I have a few people who drive for dollars for me and I just look them up, find the owner and start sending them mail.I feel my lists are accurate, I get results from them, and update them too.I haven't heard of "sourcelist.com" so I couldn't tell you about that one.All my lists are quickly downloadable to excel and mail merge ready, which is cool.

So the Mortgage includes the taxes and insurance. 

A written criteria is essential.I suggest you focus on properties where an action is occurring, such as a high-equity foreclosure, delinquent taxes, etc.

Realty Tax is about 18k a year insurance $7500 water sewer avg $16k utilities $8-9k.

What are the taxes?

Explain him benefit of owner finance based on his tax structure, since how long he own and what is his plan (Cash, 1031 exchange etc...)What are some questions that I should ask the seller during our meeting?

My monthly cost are below.Mortgage - $640, HOA - $334.50, Prop. mgmt - $95, Taxes & Ins - $105Clearly a losing proposition, not to mention finders fees of 75% of first months rent, and any maintenance costs or assessments.On to my question.  

Tax advantages are a concern for me as well.

I guess they are buying tax sales or they are buying from owners that are tax deliquent and don't want the lots.