@Peter Mckernan Copy.... it's a "% based payment" off scope of work. 

If you spend the entire $300k restoring the property, then here is the end result:- deductible casualty loss of $50k- no current tax- the restored property has $0 basis and cannot be depreciated- when it is later sold, the entire sale price is taxableMechanics and reporting are tricky, and I would not recommend to DIY it, especially since my scenario is over-simplified, and your real scenario is likely to involve more gotchas.Thanks so much. 

At the time of sale, we would amend our existing mortgage to ensure the sold property is no longer collateral for that mortage. 

First one we did closes in Feb and is sold to Toll Brothers..

I’ve owned different residential homes in California, both sold off market and for over asking.

Assuming you sold the home at the end of 5 yearsYour NET ROI would be:0% appreciation: 10.93%1% appreciation: 12.13%2% appreciation: 13.33%3% appreciation: 14.53%This ROI calculation takes into account taxes, insurance, selling costs, repairs (calculated at $3500) through out the lease.

Investment Info:

Single-family residence buy & hold investment in Okemos.

Purchase price: $350,000

Cash invested: $10,000

Sale price: $435,000

Primary residence converted to a rental after 2 ...

What would you save in captial gains on the $360k if you sold now?

All things being equal it's usually not good for the owner unless of course it's a way to get the property sold.

I'm a Realtor that has specialized in selling short sales for 18 years - have listed and sold hundreds.