I believe ARV will be higher than this but starting at 800k is a safe and conservative number. 

It stops nonsense before it starts and keeps your property safe (and your sanity intact).Hard on Paper, Soft in PracticeMy lease was stricter than a middle-school dress code: no overnight guests, no smoking anywhere, and quiet hours that would make a library blush.

If there is an existing lender not agreeing in writing to accept payments from the LPO buyer, then you are in violation of the statute -- and it is a very toothy statute -- vs the seller/landlord side only thoughWe are getting ready to get one in place because the seller is demanding it and my client is the protected buyer.Yes -- you must vet your sub to buyers -- some should not be anywhere near a wrap transaction.Stay safe out thereAlan

Sounds like I can safely write them off only after I purchase the rental and start the renovations to ultimately rent it out.

You may pull it off.Still, there's something to be said for the critical mass, many baskets, safe-if-boring neighborhoods.

The other method is to use a “safe harbor”, i.e., the specific procedures laid out by the SEC in Regulation D.  

However, i've never really seen the logic in taking those paths when you can just take the safe and slow approach. 

A lot of the US market - housing, stock, treasuries, etc - is basically a legal money-laundering location for honest or ill-gotten gains in the rest of the world, because the markets are open to foreigners and as close to a guaranteed safe haven as can be found.

Maybe also consider if they are "good people" that work in the community and just want a safe place to raise their family. 

That $2M would be worth $100K on a safe 5% withdrawal rate at that time.