A deal may have a good cap rate, but when you factor in repairs, acquisition costs, and debt service, you could still be under water. 

Would it be a good idea to take a deposit to secure the deal until the rule clears?

Welcome to BP Ken and good luck investing!

Either way, I am willing to jump on a good deal in either market if the right thing comes up. 

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

Still need to screen S8 prospects though.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

The fix-up and increased value will not matter to the IRS as long as you sell within a reasonable time frame of the house passing into the estate.

The ones with really good reviews, and a high amount of reviews usually cost a little more, but do a good job.  

Why Lexington is a good area for STR?  

Ian - do you have any recommendations for a good securities law attorney?