Thereby reporting approximately $60K income + interest immediately thus creating a "phantom income" issue.It seems crazy to think that I would be taxed and accordingly penalized for picking up well over $60K in income when I haven't received a fraction of it.

Costs are different in different places, so perhaps for your situation, it is reasonable, but I'm getting a much higher coverage for a fraction of that quote.

I knocked $6k off the price even though it wouldn't cost me a fraction of that to correct.Now I'm buying the house for $29k.I wouldn't make this your strategy, but you might want to offer what you think it's worth now that you're 'fully' informed.Rick

Unfortunately you only need $11,000 in income to get up to that rate.A subtle aspect of UDFI is that it is based on the "debt financed fraction". 

Then I also applied a fraction for the percentage of the whole carpet area for the two rooms. 

Unless you have the Pro account and can see the listing date, I would hesitate to put much faith in the results being a reflection of your current market.Regarding the MLS - I'm an agent in the SF Bay Area and only a small fraction of our rental market actually goes through our MLS.  

That "debt financed fraction" changes over time.

Under this scenario, the real increase in wealth is because of the decline in value of the dollars you are paying on the loan overtime, and the payments you make 10-20 years from now on a fixed mortgage at 4% will be only a small fraction of what they are today in real terms while the property itself is a hedge against inflation, and rents increase because of inflation.

If you withdraw 100 acres in Wyoming in one distribution (as opposed to fractionalizing the distribution over a number of years to reduce the one-time tax hit), you will have to have the property appraised and the value will be reported by the custodian as a taxable distribution on your 1099.

Strong tech prospects - prices are still a fraction of what they are in the Bay Area.