Hopefully that upfront diligence plus a healthy contingency budget would suffice to keep me out of that scenario, otherwise I would foresee a guaranteed loss, or underperformance at the very least.

Once a complete loss mitigation application is received, the servicer must review that application before starting the foreclosure process.""

And you now have to file three tax returns:- partnership tax return- your individual tax return reporting 1/2 of the partnership losses- your partner's individual tax return reporting their 1/2 of the partnership lossesAnd while partnership return can be DIY-ed, it probably should not be.

Because your second year is likely (oops, I did it again) to show a net profit instead of net loss.

The insurer will probably also tell your friend (s)he appears to be in breach of the averments in the seller's affidavit and will be held responsible for any loss the insurer suffers as a result.  

If you think this distinction is unimportant, consider what happened to investors who placed their IRA funds with American Pension Services,—an administrator whose founder mishandled their money causing a $22 million loss.

If you plan to use the property for a month, you will likely not be able to utilize the losses since it will be deemed a personal use property.

Heck it's so good I could manage a loss for a few months but I really think the cash on cash return will be 10% + first year and 20%+ 2nd year. 

K1s show your share of income or losses from the partnership, and you include it on your respective personal tax returns.Now, to your partners.

You'll just add to your losses and still have the same mess to clean up.The process for abandoned property is to give written notice to the tenant at their last known address (your rental).