best wishes  i dont do gap funding at all.. so no.. not something I would do we do JV deals every week but we have zero debt all cash and we control the process. 

The name (former tenant) looked familiar and sure enough when we looked at the credit report there was the debt from us from 2023. 1.

More than likely a blend of my money and other sources.So, I'm assuming "other sources" is equity, not debt.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!

However, you can get loans that are based on the performance of the rental and not your personal income and debt.

It's the concept of buying the debt attached to the mortgage rather than buying the house. 

The majority have evictions on their record, don't make enough income or have a lot of debt under their name.Comparing other rentals on Zillow, my asking rent is $1100 while other properties are trying to rent at $1200.

I am expecting to do 3-4 deals per year until I get to 20 properties or so and then snowball the debt so they are all paid off by retirement. 

With this in mind, if you intend to leverage short-term debt (hard money), it's even more vital that your underwriting is thorough and that you have the correct systems in place to tackle potential issues.

Holding the new property until passing offers a step-up in basis, eliminating deferred taxes for heirs.