Hi Melissa,I may be wrong, but I think you're blowing things out of proportion here.

In NC, for instance, "Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provisions for common expenses and any prepayment of reserves must be paid to the unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments." http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/BySection/Chapter_47C/GS_47C-3-114.html

Total payments made actually equal the purchase price)* The amount paid in rental payments is an excessively large proportion of the total sum required to secure transfer of title to the property.* The taxpayer can acquire title to the property under a purchase option price that is nominal in relation to the value of the property at the time the option may be exercised.* Some portion of the rental payments is specifically designated or readily recognized as interest.* The sum of the rental payments and purchase option approximates the original purchase price plus interest and carrying charges.* The lease requires the lessee/buyer to make substantial improvements to the property.Keep in mind that no single factor is determinative, and that additional factors not listed above may also influence the result.You should also keep in mind too, that it will not be the IRS who determines whether your contract falls under the scope of Dodd Frank- it will be some local judge when your PO'd tenant buyer and his attorney take you to court and sue you for the past three years payments because you didn't "take under consideration the borrowers ability to repay."

Fingers crossedOn another note, what's with MOLD and being blown way out of proportion?

Which would be inversely proportional to the amount of equity that the original buyer had?

. : )Plenty of cheap houses to buy just be sure that you don't have to get tons of different managers with the portfolio as that is a logistic nightmare of epic proportions.

If so I would take current rent at 990 X 12 = 11,880 11,880 X .40 ( 60% costs) = 4,752 NOI 47,520 sales price at a 10 cap with no deferred maintenance. 47,520 - 20,000 ( estimate repairs but probably worse) = 27,520 purchase This one is a loser of epic proportions.

Then had a contractor with a bobcat dig a spot and compact the gravel.

Sinking concrete is usually a sign that your base material was not sufficient, or not compacted adequately or the wrong type of material. 

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