You make a valid point and I did think about getting an additional bid but 1) we have a good long history with this guy and he's always been very fair, 2) the hole in the kitchen floor constituted an emergency in my book and 3) with the tornadoes, finding new contractors is a real problem right now.

As you point out, what constitutes normal wear and tear is highly subjective.

In cutting those, and keeping the constitutionally protected retirements, we are creating the "neighbor vs. neighbor"Here point - forget the class warfare; that isn't the biggest problem.

I do not think you can check her credit without written authorization, there are new federal laws that could be violated if you do not get a written authorization. a promissory note does not constitute authorization to check credit. you probably should have had her sign the authorization to check her credit form and checked her credit before loaning her the money.

They are saying that it constitutes a gift which is not allowed for investors.

Probably should have used the term cosigner instead of 'partnership', but I wasn't sure if our arrangement constituted a partnership (we do not want that).

Lynn M.That was not what I was sure about.I was not sure if the extensive termite damages constitute a "major" defect, where I could back out of the deal and ask for a refund of the EMD.

I'm not a lawyer, but I don't think smoking would constitute more than normal wear and tear unless his lease specified no smoking.

Honestly, there are deals to be had in most places -- you just need to know how to identify them, That's going to be your first mission -- to determine what strategy to employ and to learn how to find and identify what would constitute a great deal.

Throw on top of that your involvement in the tenant selection process or actively engaged in rehabs by purchasing fixers that you make ready to rent.It is not necessary to manage your own properties, but it makes it easier especially when you only have 1 or 2 properties.Bottom line is it is a judgment call what level of activity constitutes "regularly involved."