If you have, you have put yourself at great personal risk.Again, I recommend you get a lawyer as soon as possible.

@Erica King Sounds like this is more of a personal budgeting concern rather than a real estate one.

This would allow us to come to the table with less funds out of pocket on the front end when starting construction.Is the best way to complete the transfer of ownership through a traditional sale registered with the county? 

I used $80k to pay off personal debts and $50k to remodel it by myself with my two hands.

You must report rental income on Schedule E and can deduct rental expenses like repairs, maintenance, property taxes, mortgage interest (allocated between personal and rental use), and depreciation for the rented portion.

Cosmo - I personally don't know Phoenix well, but if I had to do this in another city I would look at income levels, crime levels, and population growth (if you can) by zip code and/or area within a DMA as a starting point.

$6k tax.Ins,hoa, not to mention utilities . took out a HELOC off of our personal home ( res.worth $900k, and a 260sq ft studio, mtr. $1450 mo.) for$ 220,000 for the deposit.

@Matt Solis would be the perfect person to speak to about this!

The first mortgage will provide a payoff to the sheriff/court and the funds from the auction go to them.

Is 10-15 miles too big of an area when determining the unit count per person?