IRS Advisory Opinion #2002128011 supports that proposition. 

I sometimes feel this way....and that is probably a natural response..I say "probably" because it ought not be so (I know I am probably hanging a proposition here).

Just think of them as 100k in 3 year bank, i'd take an all sourced out break even deal everyday, so long as it's minimal work, ie hired property manager and you're covered at max possible expense rates. if you save a bit, good, if not, fine. you make enough to live the way you want, you don't need the extra 300/mo, too small for what you are making. with the 800k you get tax shelter benefits and CA proposition benefits which lowers property taxes significantly.

My value add proposition is to turn what is a walk-in attic off of the master into an ensuite master bath.

Why would you not try to help instead of wanting money up front why like you stated April why not put a business proposition on the table & say that they will Mentor us & they get a split of the deals up until we are comfortable to venture on our own???

Your offer would have a cover letter explaining what you're looking for and your value proposition ("get it off your books right away" etc).

That's a risky proposition for a bank.Can you partner up with someone?

Where I live properties are appreciating 15-20% year over year so what you're suggesting would be a losing proposition here in Toronto.

If you build a USP (unique selling proposition) while you are slowing down your military time.

My focus is buy-and-hold so I'm not looking at forcing appreciation and doing a rehab from out-of-state (what you're proposing) is a far different proposition from buy-and-hold (what I do) so who knows what other pitfalls there could be along the way.