Count your blessings because I've seen new owners lose over $10,000 with an inherited tenant.

But what happens when it goes bad and your friend financed the build and its losing $100k.

Also the layout is important-what space are you losing to get the second bathroom?

It makes her job more difficult and you could lose  a few thousand because of that.  

I can always turn this into a LTR but with the current rates I would be losing money every month.

The others are trying hard but really just part of the experience- varying from losing money, breaking even or a small positive cash flow.

HI James, I appreciate option 2 being an option..plenty of examples of investors rushing to use their 1031X and the investment losing more than they 'saved.' 

OK- If any wholesaler or Realtor tells you to ignore listed properties or shy away from them is losing out on tens of thousands of dollars this can make you.BEFORE I BEGIN, I AM BOTH A REALTOR AND A WHOLESALER YOU MOST CERTAINLY CAN-WHAT I AM ABOUT TO TELL YOU IS FACTS- NO MATTER WHO SAYS SOMETHING DIFFERENT AFTER MY POST.THE GENTLEMEN WITHIN THIS THREAD HAVE REALLY GOOD POINTS AND THEY ARE ALL VALID, HOWEVER, I CAN SENSE EVEN THEY HAVE LIMITED BELIEFS ON THE POWER OF REALTORS.MY FIRST WHOLESALE PROPERTY EVER (AND I'VE DONE OVER 100) WAS WITH A REALTOR INVOLVED ON THE SELLERS SIDE.- THERE ARE MANY MANY MANY REALTORS WHO LIST JUNKERS (FYI HINT: TRY SCOUTING OUT LISTING AGENTS FOR REMAX AND/OR KELLER WILLIAMS)...

Please come back and post a follow up, even fi you wind up losing money on the transaction, because it is a good opportunity for new people to learn how difficult flipping a house and turning a profit can be.

But the emphasis and analysis and going over what's a good deal and what's not was what made it so important.