A lot of polices exclude water damage in a variety of different ways.

Yes I agree with Bobby - the cash flow on a $150k duplex can get near to 12% ROI, though this is with financing and professional property management excluded (e.g., a cash purchase, self-managed).

Based on your description, you can elect to recognize all of the capital gain as of the closing date and use IRC 121 to exclude the gain from tax.

You can back out after the inspection and get your escrow money back as long as you didn't exclude that clause.

I'm wondering if there is a way to exclude or eliminate that parties interest?

Similar for much of Northern California excluding the coastal areas near San Francisco is different.I suspect however you are referring to the high appreciation markets (San Diego, Orange County, Los Angeles, San Francisco area).In those markets it is challenging to not have initial negative cash flow.

Casinos are excluded from most national tenant leases, though you may be able to negotiate a waiver for something like coffee, which makes sense next to a casino assuming they don't have one inside.

Appliances were excluded from sale.This is my first time so help me out with my strategy thoughts:1> Submit Final settlement statement which shows purchase price was 225k.

It is our goal to be in the 40-50% expense ratio excluding P and I on all properties. 

This means that everything is covered unless it is specifically excluded.