This list of accounts or the total amounts are then added or subtracted to income and expenses, the difference is then balanced to your bank register showing that the fund is in balance.There is absolutely no need to have separate bank accounts for different properties or for different types of accounts, that is simply a mess, while you may think it's simplified, the tax man may not, your banker won't and neither will your accountant.Simple, basic accounting or bookkeeping is not difficult after it is set up.

They're happy to carry my license for just the insurance cost, so that simplifies that end of things.

I'm curious as to why so few people use software to help simplify their lives.

I have been looking at getting into REO and this helps clarify/simplify the process.

This is a very complex topic, but I want to show one simplified example here:bought a house for $200kheld it as a rental for a few years and deducted $30k worth of depreciationsold the house for $260kyour capital gain is $90k, of which $60k is from appreciation of the property, and $30k is depreciation recaptureIf this house was sold by a retired couple who had no other taxable income for the year, they would still pay zero taxes on the sale!

I always thought that wouldn't be worth the effort, but they claim a simplified process that only costs $500.

That's an overly simplified view.  

Originally posted by @Aaron Smith:@Michael PlaksMichael, I'm wondering what the fixed percentage of the principle payments are the tax-free return, and what is taxed.I read this on another biggerpockets article, but haven't validated it yet: "For every $1 of principal seller receives, $.50 of it will be taxed as capital gains"I'm trying to offer a principle only seller financing offer, and want to outline the tax benefits to the seller.You must have read an example, as 50% is certainly not the rule.Here is a simplified example. 

That's why when the hedge/mutual fund industry lobbied Delaware to create the seeks and simplify their world...

Do you have to use the purchase agreement that can be found on the TX real estate website or can you use a simplified one page contract?