Your tenants might hesitate due to such a ugly view, but you could do a lovely screening patio or fence and minimize that, also.

If you ever wanted a "reasonable and ordinary" business reason to buy a kayak, boat, jet skis, etc. you may have just found it!  

So you potentially would not be able to honor the rent to own or even an ordinary lease. 

Nice street and patio views!

Your income/loss is ordinary.

This is a detached home with an attached two-car garage and a expansive back yard with patio, space for gatherings, seating area, and a nice green lawn with mature trees.

Purchase price: $600,000 Cash invested: $75,000 This is a detached home with an attached two-car garage and a expansive back yard with patio, space for gatherings, seating area, and a nice green lawn with mature trees.

Plus, interest income is taxed at ordinary income rates.If your dad lives in a high tax state like New York, his combined federal and state marginal tax rate could easily be 40% or more.

Purchase price: $25,000 Cash invested: $13,097 Three bedroom, one bath, detached one car garage, front porch, back patio and deck.

@Reid MathewsGenerally speaking, if your rental activities rise to the level of a 'trade or business', any costs that are 'ordinary and necessary' for running a rental real estate business can be expensed.