@John Zhang If your wife qualifies for Real Estate Professional Status (REPS) and materially participates in managing rental properties, there is no limit on the amount of rental losses, including depreciation, that can offset your W-2 income.

Given that the property was worth $390K in its current condition, I saw an opportunity to make the numbers work while keeping my upfront costs low.Instead of increasing my cash offer, I negotiated a $25K down payment with the seller carrying the balance for two years through owner financing.

You’re on the right track—build awareness of costs where it directly impacts their role, but don’t overcomplicate the program with factors they can’t control.

No properties yet.

Quote from @Mike Grudzien: If it's an RV "stopping spot" on the way to some tourist area far away, no. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

He's in default of the lease agreement, and the mortgage company still expects their money, no matter what’s going on.

No legal jargon or last-minute surprises.Smaller credit unions are also worth exploring.

Of course after a few deals, he/you will gt better at putting a number on the project, but you may have slim or no profit on at least a couple of jobs.I had decades of experience and a partner with unlimited deep pockets, and still lost money on a flip!

I will no longer manage furnished long term rentals.