Should I have them sign a formal lease?

So, the rate will be probably ~1.25% higher.Don't forget that there is another requirement about being able to carry the mortgage as if the other units weren't rented -- forgot the formal name for this "test." 

First off its, border not boarder.

On the other hand, you COULD work out a less formal deal --- based on trust. 

I believe you must put in a formal request with the city to pull a record of permits/work completed.

However I see that if you can structure this deal correctly you can qualify for a long time capital gain.Tips to get capital gain treatment on the sale: A) If you have actual investment property and you are dealer: -Maintain separate book-Document intent to hold the property as investment property in Minutes or other document-Report expense as investment expense on tax return-Also use separate entities.Using controlled entity to get capital treatment on land:-it is important that the sales price reflect the property's actual FMV at the time of sale. the formalities of a sale must be observed.

By the way....my first rental property was just over the border from Spokane on Hauser Lake.

He gave her 3 options: sign a new lease, cash 4 keys, or formal eviction.

Tuesday she said someone else was coming to view the property so she was waiting to submit formal documentation. 

We have chosen 5+ units as it seems it will be easier to secure financing as the asset will qualify itself, rather than our income/credit score having to be used to qualify (which cross border lenders will probably consider risky as we have no financial footprint in the US yet).