@Brett RiemensniderYou don't need to provide anything to your tenants tax-wise.

Then there’s this glorious tax season where you realize how many things you get to deduct that others can’t, while sheltering your income with depreciation, and earning tax free income with appreciation.

And must be pretty significant unreported income if it would have caused $45k in state tax liability.You advised your client to wait past the expiration of state statute.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

You could, for the purposes of verifying that you are not renting to someone who is potentially dangerous or financially incapable of shouldering the burden of being a roommate, ask them to apply through Zillow so that you can see their background check, that also gives you the opportunity to have others who might be interested in being your roommate as well, apply.

I have gutted to the studs the last 5 properties I have bought from tax/foreclosure sales in this county and this one is not far from a full rehab. 

Line Item Fee Collected Rents 10% of All Collected Rents New Tenant Search & Onboarding $500 Business Hour Service Calls $80/hour + Materials Cost + Tax After Hour Service Calls $110/hour + Materials Cost + Tax HVAC Cleaning & InspectionGutter CleaningSpring/Fall Exterior CleanupSeasonal Mowing & Weed TrimmingSeasonal Snow PlowingGeneral Contractor Vendor Cost + 10% Oversight Fee

I'm wondering if some one can help with an explanation about why a Hotel has many rooms with tax lien on auction? 

Quote from @Erick Pena: A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − DebtThere's much more to it, but that's the basic idea.

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.