Quick Update:Buyers list has grown to about 8.Bandit Signs will be arriving in the middle of next week....will be adding yellow letters to the marketing plan and using these two cost effective strategies exclusively in the beginning.Have made contact with Hard Money Lender.Have also been following Ron Legrand's Methods.....i like his no-nonsense style....and it doesn't hurt that most of todays gurus got started with his teachings.

Capital improvements, however, must be added to your basis in the property and will be deducted from the capital gains on the property when it's sold.  

I love rentals where there is value to be added How did you find this deal and how did you negotiate it?

Hi Mike,The posts above did a good job of replying to your questions, but there are a couple of other considerations that I think should be added based on your situation.

In order to keep closing costs minimal and not be reassessed in taxes, the idea is for current owner to transfer title into an LLC, Ill be added as 50% owner and they will then leave the LLC, in turn transferring ownership without triggering any events.Does this make sense or any suggestions?

Hi. I am looking to sell my SFR in So Cal with seller financing. It is a house that is livable but has issues that would need to be handled. It is on a double lot and could have an addition. The area has nice values s...

I don't understand how this would work as my personal name (and I will be adding my wife's name to the policies also) is on the policy.For example, let's say the Personal policy for Coop #1 is $400,000 where my wife and I are named insured and we have added XYZ LLC to be the additional insured.My understanding is that if the renter sues us for $1,000,000 that they are capped at being awarded $400k (from the policy) and can't get to us personally for the remaining amount that they are seeking?

As for the 30% rate, I assumed that my rental income would be added to my current job's salary, which would put it around the 30% tax bracket.

@Andy D.If your properties are owned by LLC's then Your LLC's, can be, and should be added as additional insureds on your tenants required rental insurance.

There is nothing you can / need to do as a landlord until / unless your current lessees either request someone else to be added to the lease or accept someone else to their household as a permanent member without adding them to the lease.