I would not value that any different that a single family - not until its a true commercial though.Check that its a LEGAL 3 unit (you can see that on the county website), and your also get some other insights to the property as well.I agree with #Eric E. that the seller is looking for a sucker...

But it is the tax return that will show the conversion of your property from personal use (schedule A probably) and into an investment property - (schedule E or schedule C of your tax return).

Hi everyone (and thanks for the time and support you guys give to the rookies),I am in the same situation of Luke E.

Once you load in a template, you should review our pricing, talk to your local contractors and and pick out the specific materials you are going to be using.For example, our templates list a "vanity" as a line item and include $150 for labor, and $500 for material. 

I overlooked including these details on Schedule E when I initially filed my taxes.Any guidance on these matters would be greatly appreciated.

If I can’t confirm 100% by sleuthing that way and talking to people, then I have the seller provide whatever proof they can that they really own the property, and also have my title company run an O&E, part of which is snail-mailing a letter to the owner in public record’s primary address so the owner gets notice that their property is for sale and hopefully call the title company and ask what’s going on if they’re not actually trying to sell. 

You guys should also be aware that this can happen when you list a house for sale as well.We listed my grandmother's house for sale last year after she passed away, and within just a couple days, our listing agent was getting calls about "the house for rent."

We decided that instead of our usual e-lease, I will print out a paper copy of the lease and meet at the property for signature.

@Jayson Greenblatt  Rent do vary, we are mostly in A & B areas, maybe a few C+, we aren't looking in D or E areas.

Thus since in both cases you as a short-term landlord are merely providing basic services to your short-term guests (and receiving passive income in return), I would think this meets the requirements for Schedule E and I would think that you can report the income on Schedule E even if you don't own the property, thus avoiding the 15.3% self-employment tax?