@Ryan RuncheyThe bookkeeping for this specific property will likely be difficult.This appears to be a househack as you purchased a personal residence but also have roommates to help with the rent.As a result, a portion of the expenses as they relate to the house are personal in nature and non-deductible.Items such as real estate taxes, mortgage interest, etc are all pro-rated.On-top of that you are doing the BRRRR which indicates that there is rehab involved.Portions of a rehab are currently deductible, capitalized or non-deductibleCurrently deductible - payment for an area of the home that is a tenant area.

I see B2  indicating bankruptcy  in their credit report as recently as April 2024.

If they are asking for a discounted rate, more than a LTR but less than your going rate, that seems to be a better indication they are real people.

Just because you don't call it "interest" doesn't mean it's an interest-free purchase.If they are incapable of getting financing through a bank, that indicates they are high-risk.

I indicated that would not be a problem.

At the moment, have plenty of financial glide path, so don't need the equity of the current Investment prop, but had planned to owner finance (extra monthly income flow @7%, fluff... more income not required to eat, clothe, house. ).1) Cursory look indicates 30% max AGI can be deducted if deferred to Charity.

Did the pest control person seem to indicate an infestation? 

The builders website has indication that they have down affordable housing with the state before so that is hopefully good news from a code front. 

you have an experienced team... he does not =) Just because there low priced does not always indicate the prop needs a big reno.

I've done some research into the market potential for renting out the property and it seems we could expect to fetch between $1,000 - $1,100 per month in rent, which is promising.Regarding the property's sale value, comps in the area indicate a range between $220,000 - $260,000.