So, while some of this may not fit the “lessons learned by messing up” box, what I CAN do is pay it forward by summarizing the most helpful advice and lessons “confirmed” that have led to our success.  

@Jessica LaPoint -- Ali summarized it well from my perspective.The fact is, if you're investing then your decisions should be driven by the markets and the numbers...

To summarize I will be effectively doing the investing on their behalf, but would like for THEM to have legal ownership of the subject property. 

I respect your opinion and prediction, but would you summarize why Arizona would be the worst market? 

So to summarize:1.

Again for Federal purposes, the yearly rental was very quickyl summarized above, while at the time of sale, depreciation actually works against you...

My take summarized:1- you did the right thing letting her out of the lease.

The various exemptions available at the state level are summarized in our Exemptions Table: https://dfi.wa.gov/securities-registration/securities-exemption-tables.

You summarized it quite well.Where are you on your real estate journey?

. - Additionally, the accounting programs often summarize data differently than how an investor wants to see it (for example, including depreciation in expenses and excluding interest payments).