Guess what since previous weak tenant was market rent you are losing your ***.I look at high cap stuff when it's few years left ( blend and extend ) or it can be weaker tenant at higher cap rate like 10 cap BUT I want them paying about half the going market rent for the building size or less in that market.

That is half the battle. 

I think the basement space is th easiest way to get into the market.

Must have been nice :P To qualify for the status there are two tests: 1. spend 750 hours in a real property trade or business, AND spend more then half your working time in it.

I understand that after the second year you can only hold 1 month of the current rent as security, but I am curious how other landlords or property managers in Pennsylvania handle returning the other half?

They offered to split the payments so I could pay half now and half in 40 days but still even $4K is a lot for me right now.  

We had the idea that I would grant him partial equity in the property for paying half of the mortgage.

What would be the best way to look to see if this half bath was properly permitted?

But for 3 bedroom apartment, you try to add one small Half bathroom and cut out the living room, you can get $2500+ by renting to student. 

When I heard the real estate agent say closing costs will be 6%, I negotiated that the seller pay half.