It's hard to hit $0 in tax as a w2 employee without 1 person qualifying for RE pro or staying in a fairly lean earning bracket. 

Would you not go to work because you have to pay income tax?

If we do sell and for a good profit, ideally we'd close after the 2 year mark to avoid capital gains tax. 

Not to mention, most states also require Unemployment tax as well as Worker's Comp Insurance.I'm also not sure how you figure that 100% credit for the rent comes through on a K1. 

Louisiana has the lowest property tax at about .5%.If you meant income tax it likely won't matter to you as any income tax that you would pay to another state will likely be creditable in full against your CA tax as lucky us we have one of the highest state income taxes in the nation.

Hi @Aaron Bryson, and fellow BP friends,I am really amazed by your post.I am from Brazil and, although I have been several times to Rio de Janeiro I don't live there (I'm in São Paulo).Before I give my thoughts about your investment I would like to give general data about Brazil (and its real estate market):Yes, it is a great time for foreigners to invest in Brazil.

My Average closing costs have been 6% when purchasing a house ( and that includes that 1% transfer tax).As far as an Inspector in that area, I can not help you on that, sorry.

He'll defer all tax as long as he is purchasing at least as much as he sold. 

Personally, I choose to invest in basic needs and one if not all of them will payout for me in the end.I think one thing people maybe are not thinking about is there could be a ton of owner finance deals out there were owners will cut deals where payments will be cheaper than rent and renters will move into their own home.. thats how i sold a ton of my OREO back in 09 to 2010.I gave Zero % loans I gave loans that were 1/3 of rent etc .. the buyers in certain states got homeowners tax exemptions so what i paid as tax as the owner got cut down by sometimes 75%  IE lower value and homeowner exemption.. 

I do my own taxes on Turbo Tax.