but profit would only move off the P&L at the end of each year IMO.

But if major upgrades or repairs become necessary, and you don't have, or didn't create a depreciation reserve, the dream could easily turn into a nightmare.Back in the lat 70s early 80s we used to count on inflation bailing us out - in a few years the property value would increase substantially and we could obtain a larger loan and pay for upgrades that way, but that really doesn't exist any more.  

lat=33.32983150282738&long=-111.68743913281254&market=phoenix&sf=1%2C2&uipt=4&v=8&zoomLevel=10/url]2nd prospective property: [url=http://www.redfin.com/AZ/Phoenix/2222-N-27th-St-85008/home/27888917/url]Thanks in advance

When we rehabbed it we went with NG forced air HVAC to eliminate the old system & having to trace pipes in walls/ceilings.We have also found the older thin metal p-traps frozen so we drain or rip them out.Our problem here is water meters freezing & that's a major issue if they burst.However, we currently have a SFH 'winterized' but we do have the heat on (55deg) & our last NG bill was $55.96 & that's cheap insurance !!!! 

@Mike Nguyen  @Rich Ng is correct  its your job as the buyer to CYOAF. 

Some areas code enforcement is nasty, other areas, if you only put them up late Fri-lat Sun, you will probably never have an issue.

Lat time I was there was for a softball tournament I played in several years ago.

I could understand the meaning of targeting the traps versus the lats instead of just "hitting the back."

This is a no equity deal, I would do a lease option assignment and get some training from the K I N G of lease options in TX, @John Jackson who I trained in lease option assignments in 2001, and hes done only 450 lease option assignments or more.Just dont make fun of how he looks or talks, hes a little goofy...

Banks have gotten VERY stingy latly in my markets.