I don't want to pay federal income taxes on the earnings I give them, the "interest" payout.

I would talk to other tax sale investors or tax sale attorneys.

If your rental "loses" $10K per year, sure that's tax deductible, but it's certainly not a tax credit.

Here’s a comparison of average homeowners insurance costs and property tax rates in 2025 for Florida, Nevada, and Texas:StateAvg.

You get an immediate $50,000 tax write-off.

That means you’re likely paying self-employment tax on top of federal and possibly state income taxes.

Quote from @Jeff Mooney: @Chris Seveney looking to see if somehow I can take over that 3.5% rate Just because you can take over the rate does not mean its a good deal, I am not seeing where this is a great deal.

When done right, pairing REPS with strategies like cost segregation or short-term rentals can unlock some serious tax savings.Really like how you framed it, appreciation and cash flow get the attention, but taxes are often where the real wealth is built.

Welcome to property tax investing. 

This one is a newer build townhome in an A-class Bluffdale neighborhood — great location, newer construction, and easy to manage long term.Property OverviewProperty Type: Townhome – newer build, A-class neighborhoodPurchase Price: $480,000 (market value)Down Payment: $70,000Underlying Loan Balance: about $410,000Interest Rate: 2.375% fixed through December 2051Loan Start: December 2021Monthly P&I: $1,755Taxes/Insurance (Escrow): $470Total PITI: $2,225 per monthRented: $2,495 per monthServiced through Escrow SpecialistsProtection: Recorded Notice of Interest on titleWhy I Bought ItThis isn’t a big cash-flow play — it likely breaks even after reserves — but the rate was too good to pass up.