Because of material participation I can deduct that $350k vs other income.Using combined federal and state tax rate of 40% x $350k = $140k in immediate tax savings.

It is incredibly hard to make money bidding online.

Personally, I think the taxes are high and the services you get for your taxes low there.I know people that invest in Detroit but you must know the area down to the street and have excellent property management.However, I just talked to my CPA today about a referral he was sending me who is a client of his that has 30 rental properties in Detroit and selling them all because the City doesn't really help, charges for everything, and they never have given a security deposit back to a tenant after they stayed because of their behavior or lack of payment.

Do you open an account to escrow your tax costs or is there another way?

But if you can get the purchase money loan done prior to closing try to do so.

In some markets and at certain times, it may not make a significant difference compared to the time and money you would put in to do the rehab.* To the same real estate professional, find out their opinion of the area and the current and potential growth and appeal of your property and the neighborhood (market) to potential buyers and renters.

Everyone seems to talk about including the costs of the new mortgage, taxes, insurance, maintenance & capital reserves, and the vacancy projections when looking at realistic cashflow, which we already do for all the properties in our rental portfolio.But we, like many, cant find properties that are making any cashflow sense right now.

However, I feel like this is on Zillow and the money in some account of theirs.

Hi Nam,The only way is creating systems that can help you navigate your project week by week.If the numbers make sense, you should place an add and see if you can hire a part time superintendent in the area that wants to make some extra money on the side, a construction superintendent will save you time and money, only doing this part time for you it will not be that costly, obviously you'll need to manage that super and you do that with preset forms and systems in place, if you need help with forms contact me directly with your email and I will send you what I have and what I use, that should help you Good luck!!!

If we 1031 Exchange and end up staying in the home a paying off the mortgage are the deferred taxes due the day you pay off the property or is there a window of time in which they will be have to paid?