Then the money is secure but not spent in advance in case of emergency and the tenant must vacate - extended out of the area medical treatment, care of inlaws or locates employment. 

For those of you interested in the details of the deal:1945 4/2, 2000 sq ftListed at $87K, offered $82,500ARV $110,000We felt as if there was no room to remediate the existing repairs on top of a total cosmetic rehab which is what this property needed.Cosmetic Rehab - $10-$20KReplace existing wood and vinyl siding - $$$Asbestos remediation -$$$$Termite treatment - $$$Rodent infestation - $$Gas Leaks - $New stove - $New fireplace - $$$All this for a rental?????????

I chose LLP (Limited Liability Partnership) over holding in my own name to get the lower tax treatment but still have Liability protection.  

Example; window treatments, furniture, lamps, etc.I have a friend that mildly stages his rentals to make them more marketable.

The winning bidder (you) simply receives legal title to the property, which also means that it has not been properly integrated into the 1031 Exchange transaction and will not qualify for tax-deferred exchange treatment.

@Dylan Douglas,For veterans housing options, also look at VHEA which seeks to house disabled veterans near where they receive treatment for their injuries or near accessible public transit which can help them get around.There are legal ways to help folks facing foreclosure, short sale and subject-to being among them.

Once you have a Roth IRA, you cannot transfer to anything other than a Roth IRA and the Roth component of a Solo 401k would provide a lot more control and flexibility.The main advantage of investing a Solo 401k into real estate or notes over personal savings is the specialized tax treatment the Solo 401k receives.

Those interested can read the basics in my blog, "Let's Play Tic, Tac, Toe".Options don't have to be scary, but they have changed and you need to do some catch up understanding what interests are conveyed, terms that must be met to avoid treatment as an installment sale, how everyone must account for the option, predatory issues and financing requirements. 

Or you can also discuss this matter with your tenant to mutually share the cost of treatment provide by pest control company.

Holding past day 365 is one of the magic formulas for favorable tax treatment.