Without this documentation, it'd be very difficult to make any deductions from their security deposit for any damage because you wouldn't be able to prove it wasn't already there when they moved in.- Don't forget to get a home inspection done on the property if you haven't already.- Once you take over ownership, be sure to give the tenants your new payment address and instructions. 

Since you have great flexibility with the self-directed Solo 401k you can decide when it makes sense for you to make pre-tax contributions (as a self-employed your income probably varies from year to year and I'm sure there will be years when you need additional deductions), or when you want to make post-tax contributions into Roth (or convert some of your pre-tax moneys into Roth), or some years you may decide that you will not be making any contributions. 

This deal was very hairy as after we ran an O&E Report, we found out there was a  $37,001.72 IRS Lien, and 5 State Tax Liens totalling $9,750.02.Our Foreclosure attorney assured us the liens would be removed after foreclosure, so we deducted the property taxes from the purchase price and it was ours. 

If, at the end of the lease (or on month to month), then we can talk about walking the property & deducting what's necessary from the security deposit, then starting over with new sec dep and new lease with just her on lease.

As the delinquency is paid up, the amount paid would be deducted from the ongoing delinquency balance and the balance would decrease.Then I asked, what happens to the delinquency of evicted tenants.

I realize it may be an ongoing battle to pursue low-income, but there are ways to track anyone down to levy or garnish -

Offer them a substantial non-refundable option fee to show I’m serious, deductible from purchase price, then use the option period to either find a cash buyer to flip it to or find suitable financing for myself to hold it.

What about charges that don't generate the same type/amount of tax deduction -- I pay my health insurance with a credit card, but I can't just take a Schedule A deduction of my insurance premiums. 

only downside i could think of is interest probably isn't deductible but no big deal. 

@Ross Ellington,Talk to your accountant to verify that the interest on your home loan as well as the property taxes are deductible.