Tax benefits and Tax Depreciation - the government allows us to depreciate rental property for tax purposes, even though in reality it will appreciate over time.Once you've got your rental portfolio built, then your only work becomes managing and maintaining the property.

So, if you're making $100/month in positive cash flow, your taxable loss will be $392.

You will notice that even your reply you answered you own question to the mortgage liens.Quote [ Pursuant to Section 3712 of the Revenue and Taxation Code, the tax deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except: ] end quotefree of all encumbrances of any kind before the sale, except: What follows, the exceptions, do not list a mortgage lien as an exception so they are cancelled as part of the sale.Basically what is not cancelled is any lien from any governmental taxing authority.As far as the IRS redeeming a property, this would only be done when their lein is considered in a junior position to the other liens.

I've been a homeowner for 14 years and in 2006, I purchased my first rental property generating a positive cashflow of $230.00 a month.

In the meantime, I would like to keep my knowledge of my current profession fresh, and I believe I can maintain this by helping others within this site with any of their title questions and the like.

If you maintain an office or place of business that is open to the public and you can get prospects to visit you in person, this is one solution.

Property #1Purchase Price $149,500 (Nov 2004)PITI - $1725 (includes $350 for HELOC, $250 for escrow shortage pymt (12months left), $125 Association Dues)Rent Received: $1195Net - -$530 (ouchhhh)And this does not even take operating expenses into acct (double ouuchhhh)...and a very high vacancy rate in Property #1...Positives: This areas has NOT seen a decrease in prices at all.

I'm asking if anyone here makes loans that are Deeds of Trust, in other words they are written up that way...as Deeds of Trust....recorded at the county as such.In my mind when you are loaning private money in small amounts....the only way you can be protected from being in the second position (and ultimately thrown out if foreclosure occurs) to the 1st mortgage holder is to write it up as a Deed of Trust.

Very well said, Jason, You are well on your way with that positive attitude.

How could there ever be a positive cash flow on rentals?