I asked the wholesaler how they arrived at that number and was told that the owner based it on how much he paid for it, back taxes, and what he needs to repay investors that he borrowed from originally.

So cash flow improves quickly   Prop 13 caps property tax increases to 2%.  

Are you setting aside for property tax, insurance or vacancies?

In the 1980s and 1990s I got to know John Beck, a California investor who had success with probable sales, tax lien judgement sales, and other distress situations, as well as “real estate exchanging” utilizing “junk” lots as some of the “trade”.  

I have found that with entity formations and tax planning when I speak to one of them, they always suggest I speak to the other before taking action.

The way that most banks use is to 'Wash" the mortgage payment with a lease if you do not yet have a Schedule E and tax return for the full year.

It's a short flight, landlord friendly, no income, tax and low property taxes.

I found this BP post which led me to this document, which lined out some of the realities behind the tax credits and repositioning opportunities, but I'm a bit perplexed by this property still. 

I bought a 900 sqft 2/1 last year at a tax auction, site unseen.

After listening to BP podcasts for a few years, I finally decided to join and I'm now looking to meet others in the DMV area that are on a real estate journey.About me:  I'm a tax attorney based in DC.