@Alina Trigub & @Jay Hinrichs there are a few options regarding tax efficiencies for non-US citizens investing here. 

(maybe that's the scary part of tax deed auctions?)

Putting more down payment is a way you can make the numbers work better but the more you put down the closer you are to conventional financing and thwarting the benefit of low down FHA financing.The SS rule requires that the gross rents of all units even your owner occupied unit X 75% is greater than your monthly PITI (prin/int/tax/ins monthly payment).

You still have utilities, taxes, insurance, realtor commissions,...

My question is regarding taxes.

I generate all types of leads; probates, foreclosures, tax delinquent, etc.

I accept it as the cost of doing business as a landlord, like paying property taxes and changing carpets every few years. 

Your cash flow is basically rent minus mortgage P&I, property taxes, insurance, income taxes, local fees, utilities (if you pay any), repairs, management, vacancy, evictions and capex items.

That means the firms pay no salary, no payroll taxes, no benefits.

If I pull out for instance $100k, I get hit with a 10k (10%) penalty then taxes (assume 25% federal, 5% state) on the full 100k as well right?