Long ago we almost purchased a unit less than 100' from the beach but I witnessed significant drug dealing out of a small apartment complex that was across the street. so we purchased in Chula Vista instead.You probably know this, but IB is heavily impacted from sewer spills mostly coming down the Tijuana River (that in Tijuana they call it the San Diego river).  

If the agent, brokerage, or decider is a frequent customer of the title company then there can be unequal treatment of the party that makes the choice.   

Beware about banking in the future ..also I would say are you really that hard up for tenants that you’d allow a drug business of profiting off people’s misery to be part of your business plan .

It's crazy how quickly you can go from a decent neighborhood with beautiful architecture to crappy apartment buildings which are crumbling into the ground occupied by drug addicts.I'll be looking for a PM company in the L/A area sooner rather than later.

The final thing to consider is tax treatment.

Those are the properties that are eligible for 1031 treatment.  

I need an 11th hour assist from my fellow BP members to be sure I am handling a tax situation correctly.

The situation: I purchased an investment property in July 2017 for the purpose of renovating, creating 3 units...

Although I required an application and background check, I allowed a previous drug user with multiple convictions occupy the premises because of his subsidized housing backing.

Although I required an application and background check, I allowed a previous drug user with multiple convictions occupy the premises because of his subsidized housing backing.

At the risk of being a tax practitioner on this thread correcting someone...you're actually supposed to report number of days the property was rented at fair market value on Schedule E.Software will examine the fair market rented (FMR) days and the relationship of the FMR days to the personal use days for treatment under Sec 280A (which involves personal use of rentals and properties rented less than 15 days).The tax treatment for a property available to rent 365 days during the tax year but rented 0 days is much different than a property rented at fair market rates for 365 days.