If you factor in ~$200 in depreciation (random number since we don't really know what your depreciable basis or land allocation is), you are looking at taxable income of $133 but you received $333 in cash.Often times a "tax loss" occurs when you have monthly expenses that bring your taxable income close to zero, and then non cash expenses like depreciation and amortization further reduce your taxable income below zero, creating said "tax loss".disclaimer: been working a long day today, so please feel free to fact check my math :)

You hand over a chasier's check for the amount of your bid or greater and they give you a constables deed (tax) or deed of trust (I believe this is what you get from the foreclosure auction).

Whatever I finance will essentially be the check the bank would write back to me, while the equity will stay in the property, correct?

@Mark Costa check out this article for a simplified overview of the benefits.

I just saw your post about being in the Houston area and definitely want to invite you to check out the Realty Investment Community of Houston, the largest, oldest and (IMHO) best REIA in the country!  

Another example would be access to foreclosures and lock boxes, you don't have to worry about someone else making time for you to check out these properties.

Check out the Cascadia Investors Alliance Meet Up in Lakewood. 

Quite often they want to do it themselves because how the business looks can really affect its success.Also, make sure to check what the vacancy rate is of similar properties.

For those probate's that you've gathered research each file and check for PR's that reside outside of FL.

Update material costs based on what you saw at Lowes and Home Depot...but check this against homewyse as wellStart making nice with a contractor and ask to see their existing job sites.Use J Scotts method of going to Home Depot or Lowes early in the morning and see who is checking out at the contractors desk if you need a place to startWhen starting don't try to estimate by only looking at an MLS listingIf you're new the odds of you finding a deal on the MLS are rare.